Tenants not willing to pay once back to normal

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    Tenants not willing to pay once back to normal

    Hi All

    Not sure if this has been covered.
    We have a tenant who’s happy to pay half the rent until they are back to work full time (currently furloughed)
    They have then said once normality resumes they won’t be able to pay back the additional rent that was missed previously.
    What are the options here please ?
    I appreciate mortgage holidays can be arranged but this only delays money owed to the lender

    Any advice would be great thanks

    #2
    s21 notice works a treat usually.

    Comment


      #3
      I think you need to explain that you are therefore not happy to accept only half the rent then (assuming that's the case).

      Most people won't be able to pay more rent than they do per month currently (and will resent the hell out of their landlord for expecting it).
      To be honest, your tenant is pretty sensible to point this out.

      Maybe live with 80% of the rent, as a genuine reduction not a payment holiday.
      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


        #4
        Although I’m quite laid back and totally get the situation that we are in, there’s no getting away from the fact the mortgage will always be owed after any holiday referrals.
        S21 is an option but Is something I wouldn’t want to put on anyone who’s struggling to pay once things go back to normal unless necessary.
        There seems to be a nice little loophole for tenants to at present. Not much protection for us honest landlords who am want to be firm but fair

        Comment


          #5
          What loophole so you see?
          The tenant can't unilaterally decide the rent for their property and, if they go into arrears can be evicted (although that is slower and more complicated than in normal times) and pursued for any debt they owe.

          Other than the timescales, nothing has really changed.
          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


            #6
            Personally given they will be at home and not working and not going out spending or paying for holidays I think it's fair to ask why they could not pay 80% of the rent given they are on 80% of salary. If they were suggesting they could not pay the reminder back afterwards then I would want to see a full financial disclosure from them as I would see it being unfair if you have to dip into your rainy day fund just to avoid them dipping into their fund. Also would be keen to see a letter from the employeer stating that they are on 80% salary and the firm are not making that up to 100%.

            From my own point of view over the last few weeks my spending has gone right down, I have no plans for holidays this year any more, I'm not having any meals out or even take aways, no petrol use etc etc. I would expect the tenant is doing the same and if not should be so 50% rent with no debt does not seem to be reasonable.

            The hard thing will be working out who really needs the help and who is just asking for reductions. Any tenant that does not really need the help is really just making it worse for those that do need help, so you need to make sure you are helping the right people. This can only be done with open dialogue and proof of income/expenses. Those who don't want to share won't need the help.

            Only my personal view, having been a tenant and a landlord.

            All the best Stew.

            Comment


              #7
              I agree.
              What the tenant is asking is for you to pay instead of them.

              And whether that's fair or not depends on the circumstances of both the landlord and the tenant.
              At one end of the scale, there's a landlord in a decent job who lets a property to fund holidays and high living.
              It might be reasonable for the landlord to forgo a holiday or two in order to help a tenant in genuine need.

              At the other hand there are landlords who depend on their rental income to live and it seems less reasonable for them to contribute, even if the tenant is genuinely in need.

              Which might be a bit harsh on the second tenant who's need is equal to the first. But no one said life was fair.
              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


                #8
                We have no idea how long this is going to go on for. I am prepared to offer a reduced rent where needed with the balance accruing as a debt. At the end of this nightmare I will take a decision whether to insist it is paid, ask tenants to leave or write it off. Which of the 3 will depend upon the circumstances of the tenant and whether I believe they have been genuine in their request for assistance or just trying to get a free ride!

                We all need to share the pain where possible but individuals receiving Govt aid need to use it responsibly and continue to pay their bills where they can.

                Good luck everyone and Be Kind

                Comment


                  #9
                  jpucng62,

                  That is the stance I’m happy to take.
                  Im there to help always have been, but don’t really like the way they’ve stated the additional outstanding rent won’t get paid.

                  Good Luck all

                  Comment


                    #10
                    jpkeates,

                    Do you think any government will allow a tenant to be evicted during these times?
                    Even a year down the line, if a tenants is unable to pay full rent, I believe the law will be on their side in this situation.

                    Comment


                      #11
                      One other important question: does the tenant have the option to leave in the near future? What if you play hardball, and the tenant gives notice? If the tenant has a renewal date coming up, or a break clause, would it not be easy for them to strike a deal with someone who has an empty property?

                      If they do leave, how long do you think it would take to replace them in this market?

                      Comment


                        #12
                        Originally posted by jpkeates View Post
                        I think you need to explain that you are therefore not happy to accept only half the rent then (assuming that's the case).

                        Most people won't be able to pay more rent than they do per month currently (and will resent the hell out of their landlord for expecting it).
                        To be honest, your tenant is pretty sensible to point this out.

                        Maybe live with 80% of the rent, as a genuine reduction not a payment holiday.
                        If I was paid 80% of my pay, but didn't travel to.work and couldn't go out I would have more money left at the end of the month than normal.
                        I'm.working from home, and i reckon ive saved £70 a week.on fuel, £20 a week on lunches, and £50 a week.on not eating out. Plus other stuff. I reckon I'm saving £600 a month.
                        my point?
                        They can afford to pay 100% of the rent but dont realise it. Offering to reduce rent to 80% would be a fair compromise. When it's all over put the rent up.to 110% after 3 months at 100%

                        Comment


                          #13
                          Originally posted by Logical.Lean View Post


                          I'm.working from home, and i reckon ive saved £70 a week.on fuel, £20 a week on lunches, and £50 a week.on not eating out. Plus other stuff. I reckon I'm saving £600 a month.
                          my point?
                          %
                          But you must have burnt more electricity gas than before.

                          Comment


                            #14
                            Originally posted by Logical.Lean View Post
                            They can afford to pay 100% of the rent but dont realise it.
                            I suspect you may be over generous on this one, i think a lot of the tenants know exactly what they are doing, the post by '' Stew ' about paying 80% of the rent if they get the same amount of pay is totally right, and as said we have all noticed how our daily/weekly spend has dropped, there are a lot of chancers out there at the moment, if my tenants said what yours have said it would be remembered and they would certainly be evicted after all this is over, i agree we need to be kind but that goes both ways, at the moment i am not so sure this is the case.

                            Comment


                              #15
                              I agree with Stew, during this period this is an ideal time to save money. There is nowhere to go and nothing to do.

                              Comment

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