Rental Arrears associated with Coronavirus

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  • loanarranger
    replied
    The Landlord cannot evict without going through the entire legal process. Unless the landlord has given the required notice and which was suspended because of Covid19 he/she must start the process including if necessary court action , that takes time . If you are unable to afford a solicitor then I would advocate going to the CAB for their help.

    There was a program on BBC Radio 5 live at 23:00 on Tuesday evening when the entire issue of Rental Eviction was discussed at some length, you may be able to listen back on BBC Sounds

    Leave a comment:


  • bermudj
    replied
    Originally posted by loanarranger View Post
    the implications of the economic ramifications associated with the Coronavirus and individuals potentially suffering through reduced income begs the question as to how Landlords should act in the unfortunate event that tenants genuinely cannot meet their rental obligations. I have my view that a conciliatory approach by accepting a “holiday” period would be permitted on the understanding that any Arrears would need to be repaid over six months once normality resumes. I accept that some might milk the situation but for long standing tenants who have always paid promptly there is to my mind a need to be seen to understand the unusual circumstances in which we all face and the bonus could be in retaining the goodwill of the tenant. Can I ask if others have considered what their actions will be should such difficulties exist with tenants.
    A very understanding proposal. However, I have a landlord that took the complete opposite approach. It uses coronavirus to evict me on the spot. What's interesting is that landlord considers itself to be a very kind, compassionate and understanding to the needs of others.

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  • jpkeates
    replied
    I had one tenant unable to pay rent.
    They're a tennis coach, so fair enough, no possibility of work.

    Agreed to wait until they got some support - but they didn't qualify.
    Missed two month's rent.
    Paid the third month (when they could restart work) and the first missed month has just been repaid as well.

    Intend to pay the rest off over the next couple of months.

    Another decent tenant story!

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  • kennyj52
    replied
    A good note to end for me too. My tenant since has found that she is now eligible to receive funding via one of the government schemes and has decided that she can pay the rent in full "for the foreseeable future". Can't help thinking that my bombarding her with advice and info from this post along with multiple links to UC and government schemes may have helped her come to this decision.

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  • fro
    replied
    Originally posted by philg View Post
    had a tenant ring me earlier in month and i agreed a reduction of about 40% as they are wonderful tenants , today i got a text to say they could pay the full amount !!! must say i was rather over the moon really , did not expect that and don`t think many would do that !
    wow - they are really wonderful tenants amazing

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  • JK0
    replied
    Originally posted by JK0 View Post
    Oh, well then she needs to crack on with the tax return while she has time off work. Maybe she'll even have less to pay than she thinks, so will be able to pay her rent?

    BTW, there's a payment due 31st July, which is known. There's no reason that cannot be made, is there?
    It just occured to me that we probably all need to have a quiet word with our accountants when we submit our returns. Normally we have to pay an amount equal to half of our 2019/20 tax on 31/1/21 and half on 31/7/21.

    Now, certainly my 2020/21 income will be a small fraction of my 2019/20 income due to electrical upgrades, and tenants moving out left right & centre in fear of corona virus. If I have to pay the same amount in Jan & July next year, as my tax will be this year, I will be seriously short, albeit that I'll get it all back the following year.

    Think on guys.

    Leave a comment:


  • nukecad
    replied
    Originally posted by kennyj52 View Post
    she is currently ineligible for UC because her savings are above the allowable limit as a consequence of saving up to pay her 2019-2020 tax bill
    You may want to inform your tenant that such savings are classed as a 'business asset' and disregarded for UC purposes.

    (It might also help if it's put into a seperate account specifically to cover future tax payments).

    In addition, questioned about the treatment of money set aside by the self-employed in relation to their liability for tax, Minister for Welfare Delivery Will Quince responded -
    '... we have given very clear guidance ... that money set aside for tax liability can be considered to be a business asset and therefore doesn't fall under the £16,000 savings rule.'
    https://www.rightsnet.org.uk/welfare...iversal-credit

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  • jpkeates
    replied
    You can always pay tax on account - she should just make the payment.

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  • JK0
    replied
    Oh, well then she needs to crack on with the tax return while she has time off work. Maybe she'll even have less to pay than she thinks, so will be able to pay her rent?

    BTW, there's a payment due 31st July, which is known. There's no reason that cannot be made, is there?

    Leave a comment:


  • loanarranger
    replied
    JKO you are indeed correct but clearly the Self Assessment has yet to be made so unless she jumps ahead and makes a provisional payment which would bring it below the threshold she disqualifies herself from the UC entitlement.

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  • JK0
    replied
    As long as the tax money is in the taxman's bank, rather than the tenant's I'd have thought it would not be counted against benefits.

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  • philg
    replied
    had a tenant ring me earlier in month and i agreed a reduction of about 40% as they are wonderful tenants , today i got a text to say they could pay the full amount !!! must say i was rather over the moon really , did not expect that and don`t think many would do that !

    Leave a comment:


  • loanarranger
    replied
    Regrettably the fact that she has monies will not help sway her entitlement to UC even though they are scheduled to pay her tax, which will be paid in two halves , one part on submitting the Self Assessment and the balance 6 months later. So in short your tenant has monies which can meet her rent and in the meantime she will have until Jan 21 to save up for the first part of her tax bill and first part of her estimated tax liability for 20/21.
    As you quite rightly say , she is way off from being poor and has a legal obligation to pay her rent .

    Leave a comment:


  • kennyj52
    replied
    I agree with the reasoning of you both though this may not now be of immediate concern as my tenant has just informed me that she is currently ineligible for UC because her savings are above the allowable limit as a consequence of saving up to pay her 2019-2020 tax bill - presumably not due until January 2021. She is now investigating with her accountant to see whether she can pay off some tax on account in order to get under the savings threshold and so be eliginle to claim back UC from the government - somewhat of a money merry-go-round. Seems to me though that she's a way off being down and out yet.

    Leave a comment:


  • loanarranger
    replied
    JPKeates echos exactly my concerns , it is all well and good asking for a rental holiday concession but if the current payments were taking a significant part of take home pay then it is not unreasonable to ask how that person intends to pay the current rent plus even three months rent arrears let alone the possibility of this extending beyond this period given the high probability of any further concessions on other credit would ultimately force them to try and do a runner in the mistaken belief that they can then start again with a clean sheet.

    Leave a comment:

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