Tenants ask for 30% of rent

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    Tenants ask for 30% of rent

    Hi all. Dare say we've had many like this but my three tenants have asked for 30% off the rent for three months due to COVID-19. All have given letters from emmployers that confirms they have been furloughed. Given that I still have a mortgage to pay, I've suggested that the 30% deduction will be paid in full by the end of the tenancy. Which gives them a reduction in rent during this tough time, allows my mortgage to be paid, and doesn't burden them with a huge debt in three months time. I have rent guarantee insurance but would need to serve them an eviciton notice to claim this and this seems a little heavy-handed at this stage. Thoughts?

    #2
    Since the economy is likely to still be in a state of collapse in three months time, how do you know that rents in general won't be 30% lower?

    Comment


      #3
      Amongst other questions;
      What have they done to access the government help available?
      When did they last get paid?
      When do they want the deferral to start?
      Do they know (if) they are joint and severally liable for the rent?

      Comment


        #4
        Originally posted by hamilton View Post
        Since the economy is likely to still be in a state of collapse in three months time, how do you know that rents in general won't be 30% lower?
        You don't but it is highly unlikely.

        Comment


          #5
          Originally posted by MungoJerrysBeard77 View Post
          Hi all. Dare say we've had many like this but my three tenants have asked for 30% off the rent for three months due to COVID-19. All have given letters from emmployers that confirms they have been furloughed. Given that I still have a mortgage to pay, I've suggested that the 30% deduction will be paid in full by the end of the tenancy. Which gives them a reduction in rent during this tough time, allows my mortgage to be paid, and doesn't burden them with a huge debt in three months time. I have rent guarantee insurance but would need to serve them an eviciton notice to claim this and this seems a little heavy-handed at this stage. Thoughts?
          But aren't their employers paying the remaining 20% of the wages?

          Comment


            #6
            Originally posted by hamilton View Post
            Since the economy is likely to still be in a state of collapse in three months time, how do you know that rents in general won't be 30% lower?
            They would stay the same under a 2 year tenancy agreement

            Comment


              #7
              Originally posted by boletus View Post
              Amongst other questions;
              What have they done to access the government help available?
              When did they last get paid?
              When do they want the deferral to start?
              Do they know (if) they are joint and severally liable for the rent?
              Its a 3 bedroom property. Two tenants will get 80% of their wages paid by the government. The other is freelance and won't receive anything until June. Not sure when they last got paid. They wish the deferral to start in April's rent (end of month). Joint liability I believe.

              Comment


                #8
                Originally posted by JK0 View Post

                But aren't their employers paying the remaining 20% of the wages?
                they have only quoted the 80% govt assistance

                Comment


                  #9
                  Originally posted by MungoJerrysBeard77 View Post

                  they have only quoted the 80% govt assistance
                  Yeah, obviously, so that you'll feel sorry for them and reduce the rent.

                  Comment


                    #10
                    A lot of companies are only giving the 80% and not topping it up to full pay.

                    Comment


                      #11
                      I think they're trying it on a bit. I'd defer some of the rent but review it month by month.

                      Originally posted by MungoJerrysBeard77 View Post
                      Joint liability I believe.
                      Seems a bit odd you don't know. I'd check the tenancy agreement and then let the tenants know. Some of them might not be so keen on deferring if they realise they are still responsible for the others.

                      Comment


                        #12
                        [QUOTE=boletus;n1101749]I think they're trying it on a bit. I'd defer some of the rent but review it month by month.


                        This is exactly the course of action taken so far. Obviously, to be reviewed if the situation gets worse/better

                        Comment


                          #13
                          I'd be tempted to help them.
                          You can probably get a mortgage holiday in parallel to subsidise it.

                          Furloughed employees are dependent on their employer getting the government grant to pay them, which isn't a simple process from all accounts.

                          As long as they understand they'll have to pay it back and think they'll be able to afford the higher payments to do that, it's something to consider.

                          They're going to struggle to find anywhere else, because three people sharing is not common.
                          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).

                          Comment


                            #14
                            I would reduce by 20 per cent and review after 6 weeks. Personally I have already decided if any of my tenants run into trouble I will write off the owing balance at the end of the year providing they are communicative and engage but won't tell them until the end of the year.

                            Comment


                              #15
                              One of the things to consider is that three months is likely to be just the start.
                              This thing may not go away for a while and if it does, might come back again.
                              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).

                              Comment

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