Covid rent holiday

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    Covid rent holiday

    Hi everyone.
    I have received a request for a rent freeze from a tenant, due to the virus affecting his work.
    He is a long standing tenant, who has always paid his rent on time, so I don't think he is trying it on and I am minded to agree.
    My question is, how is any agreed freeze documented, without falling foul of rental law, and including a commitment to a plan to make up shortfalls in rent in the future?
    Would a simple letter be sufficient, to be signed by both parties, or does the tenancy agreement need to be revisited, or something else?
    Many thanks, in advance.

    #2
    It would appear that at the moment, any 'rent holiday' will be limited to 3 months max (ie no rent increase alllowed'. T remaiins liable for current agreed rent.
    DO NOT amend the AST, just notify T you have no plans to increase the rent at present.

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      #3
      Be careful when considering whether to agree to this- it's unlikely the tenant will ever catch up on rent arrears if he/she isn't earning enough to pay it now. Make sure that you have enough money to pay your costs / bills and if not, it would be impossible for you to allow a rent holiday financially.

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        #4
        Are you agreeing to not collect rent now and be owed it to be repaid in future or simply to not receive any rent for a period and never receive it?
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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          #5
          Someone else pointed out that a rent debt is not a bad thing to have with s21 being due for the chop. I would suggest that T pays 50% pcm for the time being, and then catches up in due course at maybe 125% pcm. (Not in writing!)

          Comment


            #6
            Many thanks for replies, so far.
            Tenant is (was?) a professional in a good job and in his request email said he would repay it when things get back to normal. There is a good relationship between us and I believe he will, if he can.
            I am a bit nervous about a complete holiday, but am wondering about a nominal rent, sufficient to cover LSC, insurance and other mandatory landlord expenditure (obviously not major repairs).

            Comment


              #7
              Originally posted by Foxey View Post
              Many thanks for replies, so far.
              Tenant is (was?) a professional in a good job and in his request email said he would repay it when things get back to normal.
              All the more reason not to have a very low/ non existant rent, surely? The guy will get benefits in due course, which should have something for rent.

              Comment


                #8
                There is increasing pressure on Gov't from MPs and others to step in and pay the wages of staff in businesses that are forced to close due to the virus. Whether or not this happens, the situation is still very dynamic. Beware of agreeing anything in writing now in case a better solution is available within the next few days. I would speak to the tenant on the phone and agree some interim measures verbally.

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