Tenants ask for 30% of rent

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  • boletus
    replied
    Just checked, not outrageous at all;

    https://www.ons.gov.uk/economy/infla...s/february2020

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  • boletus
    replied
    Originally posted by hamilton View Post
    undoing the outrageous rent inflation of the past decade
    Have you got a source for that? I thought that rents in general had barely kept up with inflation.

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  • hamilton
    replied
    In my part of London in the past week I've seen an estate agent listing a 2-bed flat for £1000 with the statement that it would normally go for £1400, but the landlord will accept the lower price on condition the tenant carries out the needed redecoration themselves. Since obviously they can't get the decorators at the moment.

    But I think they may struggle to find tenants even at that price, at least for the immediate future, given that many businesses are closed, the universities have shut down, and international students and workers have fled the country.

    I'm hoping that rents will reset to 2010 levels, undoing the outrageous rent inflation of the past decade which was totally disproportionate when considered against tenant's stagnant or deflating salaries. It's true that some landlords very expensively refurbished rental properties over the past decade, but they charged an outrageous premium for it, too. Some didn't even do that, keeping properties in a state of managed decline whilst still raising rents throughout the decade without having done anything to merit it beyond having the good fortune to be carried up by a rising market.

    So, let's hope sanity will return and £1000 will become the new £1400 from here-on.

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  • jpkeates
    replied
    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.

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  • Jon66
    replied
    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.

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  • jpkeates
    replied
    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.

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  • MungoJerrysBeard77
    replied
    [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

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  • boletus
    replied
    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.

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  • ExpertInAField
    replied
    A lot of companies are only giving the 80% and not topping it up to full pay.

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  • JK0
    replied
    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.

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  • MungoJerrysBeard77
    replied
    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

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  • MungoJerrysBeard77
    replied
    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.

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  • MungoJerrysBeard77
    replied
    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

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  • JK0
    replied
    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?

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  • boletus
    replied
    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.

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