Corona Virus - advice required for Landlord : residential properties

[landlordray]

Just a quick update,

My tenant has advised me today that as schools will be closed from Monday, she will have to take time off work to look
after her two children and will not get paid.

I have explained that I will defer the rent for 3 months, I am not waiving the rent , this will need to be repaid at some stage in the future.

She can pay the rent for April but will be unable to pay after that and will not be able to pay off the accrued arrears in the future,

I think she may be trying it on ..... she hinted that she may have to give notice and leave, moving in with her Mother,

Given the bashing that Landlords are enduring at the moment I will happily accept her notice and sell up.

[jpkeates]

In what way is the tenant "trying it on"?

Someone's lost their job and won't get paid.
Obviously paying their rent is going to be a problem.

She should be applying for Universal Credit, though.

[landlordray]

She has not lost her job, she is taking time off to look after her children. She works for the NHS but tells me she is not classed as a Key worker.

She has told me she will be unable to pay off ANY arrears even after 3 months of me deferring the rental payments.

She has said she may need to give notice and move in with her mother, taking her two school children with her.
Presumably there is no need for her mother to self isolate at any time ?

I have given this situation some thought and will still try to assist her. I am prepared to waive 1 months rent and arrange a payment plan which will initially involve me accepting reduced rent for a number of months until we reach some sort of normality and get back on track.

I also understand that either some or all of her deposit could be released and used against rent payments ?

I should know more on Monday when she has had further discussions with her Employer.

I am still undecided as to whether just to let her give notice and I sell up or, if she is genuine and just over reacting, then I will try to assist.

Obviously a difficult time for anyone if their home is at risk

[jpkeates]

I agree.
I live off my rent, so any reduction in rent is a loss of income (and I don't know many people who could afford to pay more rent for a period to pay off arrears).
And, three months is a best guess for now, this thing is going to last more than that.

The tenant's deposit is the tenant's money, and can be used for whatever you both agree it can be used for, including rent or arrears.

[Deej1]

If I get a mortgage holiday, I will pass that on to my tennent in full.

[Section20z]

Why on earth would you do that ? if you have a repayment mortgage you will still have to repay it, if interest only they will simply add more interest on the interest.
nobody is giving you anything for free I'm afraid.

[Section20z]

If I get a mortgage holiday, I will pass that on to my tennent in full.

Why on earth would you do that ? if you have a repayment mortgage you will still have to repay it, if interest only they will simply add more interest on the interest.
nobody is giving you anything for free I'm afraid.

[ATC]

can we be a bit realistic folks? If someone says I cant pay the rent in full at present , and this may be the case in London where up to 80% of salaries up to £2,500 will be paid by the State, ask them if they can manage to pay half.

[royals7]

As an aside what is the policy for putting BTL up for sale at this time, can we enact a guarantor signed agreement and can you access held deposit for arrears? Thx

[ExpertInAField]

If you are putting anything to for sale right now, I wish you the best of luck. People's finances are going to be getting considerably worse over the next few months and the countries economy is likely to do the same. Who is to say what mortgages people will be able to get in 3-6 months stone.

With regards to the 80% salary thing, from what I understand it's only if organisations would effective fold if they had to pay the staff wages and under those circumstances can they get the government grant. Some companies may not apply, or be eligible.

This is one of those times that I'm glad I own all my properties outright. Means my ongoing costs are considerably smaller than they could be. Also means I can weather any non payment of rent for a long long time.

I honestly think that this nation is going to be in severe dire straights when we come out the other end. I'm going to do all I can to help my tenants because of we go in heavy handed now, we could end up with so many laws against us.

We may think it unbelievable, but who is to say that the government won't put into place that we can no longer sell or homes, or the government forcibly buys our houses at the amounts they set.

We are now living in interesting times.

[DPT57]

She has told me she will be unable to pay off ANY arrears even after 3 months of me deferring the rental payments.

Tell her that in that case in order to avoid having to take legal action against her you would be prepared to accept a surrender of the tenancy when her rent is next due.

[landlordray]

Tell her that in that case in order to avoid having to take legal action against her you would be prepared to accept a surrender of the tenancy when her rent is next due.

Thanks for that, I have already been considering my options. which includes accepting a surrender of tenancy

I am prepared to be flexible to help out, but, I also expect her to make some sort of an effort an effort as well,

I am expecting further info from her today after she has discussed the situation with her employers

[landlordray]

Further update :

Good news, my tenant has advised me that her employer has found a way for her to work from home...

So no problem with the rent at the moment