UK Landlord Forum / Life

I have been renting a house to my tenent for the past 2 years. Today I visited the property and they are nearing the completion of building a 24 for x12 ft studio. Although it is Made of wood it has a sound insulation a separate consumer unit, over 10 double plug sockets 4 windows and lighting. They pay their rent on time and keep the house clean, but I'm so annoyed at the way they have put this building up without my permission.  They erected a smaller shed last year that they used as a studio, tv decks and put a sataalite dish on it, but the new one they've build it enormous.
What should I do?

The property is theirs to use as they wish while they are renting it from you. As long as it is returned to the state it was in at the beginning of the tenancy, at the end of the tenancy, then there is little you can do unless you have expressly forbidden (or attempted to) activities along these lines in your AST. Even then, it is their property while renting it from you.

What should you do, you ask. I'd suggest nothing to enforce any action, but you can make it clear, of course, what your expectations are at the end of the tenancy. Them building something like this certainly would make me infer that they intend to stay a long time... a long-term Tenant that pays their rent on time is a Landlord's wet dream, right?

In fact, maybe it's time for a modest rent increase? After all, they've just put all this effort and expense in - an increase wouldn't make them move, would it?

So... act now... get a nice increase in - £25 to £50 per month... you have them by the balls! Take advantage, it will make you feel better.

I am surprised that any tenant would make such changes without considerable discussion and permission.The electrical changes alone I would have thought required the consent of the owner? How did you react to the earlier building,did you make your feelings clear then?
You should certainly write making it plain that you expect everything to be returned to normal upon their departure.I assume there has been no annoyance caused to neighbours,otherwise you would be held responsible.
That said,Hippogriff is certainly right.They pay their rent,and seem to be in for the long haul,so that's all good.Direct your displeasure by taking more money off them,that'll learn them!
 
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Thank you for taking the time to reply Hippogriff & Heavykarma.
Yes I do believe they are in for the long- hall, however there is no electricity supply to the garden at the moment. I suspect they have been running extension leads from the house to power the first shed. They did ask if they could erected the first shed as they needed somewhere to keep their lawnmower, however they then made it in to a small music studio instead..
  This new one build however is enormous and the electric will need its own supply.   I counted 10 double plug sockets, two  strip lights and outside lighting, heating and a fuse board with armored cable, which they want me arrange to have connected to the house electricity supply.

They are obviously intending to run a business from this building and apart from everything else, I am worried that a commercial business connecting to the residential electricity supply may invalidate my Building insurance.  I am annoyed at how underhanded they have been by not seeking permission, and although you say return the property to its original state. I have secured their deposit but this would no where near cover the cost of putting the garden back to its original condition along with the removal of the studio.  I don't want to cut my nose of to spite my face but I'm worried what they might get up to next.  I have never increased their rent as I suspect they would  failed the affordability checks ( laughable when you think of the money they've spent on building the damm thing) they have guarantees,  They are on rolling periodic tendency agreement,  if i increasing their rent would this mean I need to issuing another year contract., im not sure I want to do that?

No, just increase the rent - either by mutual agreement or, failing that, a Section 13. No need for a new fixed term.

Thank you Hippogriff,  your advice. It's much appreciated.  I have taken out insurance against the tenent not paying the rent - This would also help cover the costs should I need to go down the evict route at any time, however  this policy has restrictions on raising the rent (the tenants would have to pay for further credit checks etc) I will look in to that and see if it's more cost effective to ditch the policy and just raise their rent using a section 13 as you mentioned.

Your absolutely right about its good to keep regular paying tenent, which they are, but a lesson I've taken from this is not to be too soft . Yearly rent rises will be the order going forward.

Thanks again

Hi I've been reading others post on here and although I gave my tenants when they first moved in the guide on how to rent. It was given as a booklet (hard copy)
Trying to eliminate anŷ future problems I may encounter,  as I can't physically prove giving it to them (It was in a folder with a copy of Gas/ Electric certificates) and other likewise bits. Do other landlords email an electronic copy or would you have gotten a
signature to say it had been provided?

Does anyone have an electric copy I can email just encase? 

Thanks

https://www.gov.uk/government/publications/how-to-rent is the first result if you Google "How to rent guide".

Thank you Simon for the link.

Commercial business may invalidate buiding insurance and mortgage.
I assume you have a residential BTL mortgage?
It will depend on the type of business though and the terms of your mortgage/insurance.
...the council might be interested as well (unlikely)..but...

Check it out before you de facto provide permission by asking for more rent.

As a side note for completeness.
The Small Business Enterprise and Employment Act (SBEEA) 2015 s35 stipulates that home businesses will no longer fall under Part 2 of the Landlord and Tenant Act 1954 - which otherwise would have provided the tenant a legal right to force an extension to the tenancy (i.e. you have to go to court and many many hoops to maybe get your property back).
However the newly inserted cl 43ZA of the Landlord and Tenant Act 1954 states that
       "    a “home business” is a business of a kind which might reasonably be carried on at home   "
but there is a provision for a Sec of State regulation that may further define "home business". 
The SBEEA provision is effective 1st Oct 2015...I trust your tenancy did not start before then?

PS: Signature for the Right to Rent document (as well as smoke alarm checks, etc etc)