My tenants are paying me a low rent and letting out a room themselves. What can I do?

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Property Clinic: My tenants aren’t paying me enough for the three-bedroom house they’ve been living in for the past 12 years

We have two tenants in a three-bedroom house in an RTB area paying low rent. They have been renting it from us for the past 12 years. Originally there were three professionals renting the property but one of them got married and moved out leaving the other two, who kept paying the rent. The same lease has been signed each year for the whole house. The problem we have is the low rent they are paying and the fact that they are now renting out the third bedroom themselves.

Therefore, this new person becomes the third tenant inheriting the previous tenant’s security of tenure and everything that goes with that. In summary, there is not much that you can do about that situation if you did give permission for them to move in. That said, I would suggest you formalise the situation so at least you are aware of who they are, what they work at and that they have a good reference from a previous landlord.

With regard to the second matter in your question about the rent being low, I would advise that once you have sorted out the new tenant’s position you have every right to issue a rent-increase notice to the tenants. There are also rules around increasing the rent.

 

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