I have a quandry - I been contacted by a holiday letting company in cornwall (UK) who've basically promised me 2-3 times my current income that I currently get from my tenants...and nosing about this does seem like a realistic figure as holidaying here now is all but impossible if not booked a year in advance so demand is astronomical.
They're friends of mine too so I have kept their rent down to below market levels as they are good tenants although dont feel too sad for them as he earns over a 100k a year !
Thoughts ?
So my friend can use my friendship to pay less than half the going rate for a house even he earns three times as much as me ? I am a little aggrieved tbh that he hasn't mentioned paying a little more especially....
Oddly enough when we first set this all up they said they wanted a long term (eg two year plus lease) agreement set up which I did but they have never ever signed it.
At a fundamental level I suppose I wouldn't be looking if I thought I had been treated a little better - I think as they will have been there two years shortly with zero rent increase that I will move it up to 80% of market value rather than the 50 it currently is and see what happens.
Its absolute madness here in Cornwall in the Uk at the moment with quality holiday lets.I have already had 2 agents (decades of great feedback and they deal with with super high end houses down to mine) I know guarantee me full summer occupancy for next year and the year after from april to september with minimal drop-off out of season as Cornwall season seems to run all year bar Jan / Feb - both expecting around 40-50k a year. Obviously from that there is their 15% fee and then furnishing the place to a decent standard and paying cleaners etc to be considered but there is very little risk here in terms of the house as the agents cover damage and I walk past it most days on my dog walk as I live in a house 5 mins from it.
If they felt aggrieved by this (if I do it) then yeah our friendship would be over as I did them a massive favour two years ago when no-one else would and have continued to do so for the last 2 years......
Ah, fascinating.
Firstly, I suspect that when you started this thread, in your original post, you had hoped for posters to support what I think was your clear preference to "earn the market rate" from holiday makers renting your property in irresistible Cornwall. You wanted to hear "go for it" from those who replied to you.
And, that is not, I think, what you wanted to hear; instead, most posters recommended security, stability, and the knowledge that you have solvent, reliable tenants whom you know, (and said that you "liked") over stepping into the (yes, very lucrative) holiday rental market.
Now, to repeat, what your friend earns is irrelevant. That is his (or her) business, not yours.
And, if you insist on conducting business with - or having some sort of commercial arrangement with - friends, then "mates rates" are not so unusual. Otherwise, keep friendships separate from business arrangements.
In your original post, you state that you "had kept the rent down below market levels" because they are "friends", yet, in your subsequent post, you refer to as how "aggrieved" you are, and I must say that your sense of resentment, comes through very strongly.
You seem to argue that they have taken advantage of you, that you should "have been treated better"; yet, who had the idea that they should pay their current level of rent? Who suggested it? Were you happy with that, - a guaranteed, steady, income, from reliable "good" tenants, - then?
And, is the place not already furnished to a "decent" standard? And, if not, why not?
The kind of target (tourist) market you are aiming for will pay very well, yes, but they will also have very high standards, and will be quite demanding in insisting that they be met, and will be both critical and intolerant if they think that this has not been done.
I will say that if you insist on market rates, - as is your right - equally, they will have every right to hold you to whatever obligations a landlord has under law, and the faltering friendship, such as it is, may well be sacrificed to these mutual obligations.
