Coronavirus - Rent reduction being sought for AST renewal for high-end property

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Coronavirus - Rent reduction being sought for AST renewal for high-end property

    I wonder if other landlords are in my position, where my tenants in a high-end property are now a seeking substantial reduction in rent (of the order of 25%) for an imminent renewal on their 12 months AST? These are relatively wealthy tenants who are able to afford the rent, but who are, in my opinion, seeking to take advantage of the coronavirus situation. They do not appear to be interested in a shorter term or a periodic tenancy. In the event of the tenants remaining in the property after the end of the current tenancy and without any agreement on a change in the rent, a periodic tenancy would ensue at the current monthly rate. However, they are saying that there is no way they would continue to pay this rent.
    i would be interested to hear the experience of others and any suggested action in my case.

    #2
    Don't offer them a rent reduction, unless it is with a payment plan to repay the difference at a later stage. Don't renew, just let it run into a Periodic tenancy.

    Comment


      #3
      As above, they are chancing their arm with the current situation, let them give notice if they wish and try and find suitable premises in a short period of time or take the hit on the rent, its a game of who blinks first i guess.

      Comment


        #4
        Maybe take a tiny bit off, (£50 or something) to give them a little victory?
        To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

        Comment


          #5
          It would depend on my relationship with the tenants and my own financial situation.
          If you feel that they're trying to take advantage of the situation, I'd be tempted to put the rent up.

          This situation cuts both ways.
          They can't find somewhere else or move.

          But that's easy to say from the safety of an uninvolved keyboard!
          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
            Run the numbers. When does the fixed term expire? How much would you lose from that date until you could realistically expect to be able to let it again at full price? Is that more than the loss of 25% of the rent for 12 months?

            Comment


              #7
              DPT57 - Your comment is particularly apt. Prior to coronavirus, I was planning to sell the property and had given a s21 Notice in early March, I.e. before the 3 months rule came in on 26.3.20. Clearly, the current situation would have a significant impact on both the sale proceeds (in the short-term at least) and the delay in finding a buyer. As a result of the coronavirus situation, it would now suit me to let for another 12 months, but not at any price. I also don’t like the fact that the tenant, who is perfectly able to pay 12 months rent in advance, is taking advantage of the current situation. I am willing to consider a sensible reduction, but not just what he Is suggesting at present.

              Comment


                #8
                The statement you make is . . .
                You ( tenant ) are capable of affording the rent, and there is no reason for me to reduce the rent.
                Show me your wage slips to prove your income has reduced. and / or your bank balance.
                If you were working, and your wages have reduced, go to the job center and apply for help with your rent.

                Why should your inability ( yes - inability, and not "trying it on ) if it exists, reduce my ( landlord ) earnings ?

                Of course, you have not mentioned if tenant is in full time employment, on 80%, etc.or lost his job with no income whatsoever.

                Comment


                  #9
                  So you issued an S21 in early March so you could sell the property. That suited you then.

                  You now want them to stay on in the property as that's what suits you now.

                  And you appear to be affronted that the tenants are trying to achieve something that advantages them.

                  In your place I would counter-offer them a reasonable reduction and take it from there.

                  What's your plan if the tenant vacates the property upon expiry of your S21?

                  Comment


                    #10
                    Landlords - The tenant is ‘difficult’ but not necessarily a bad tenant. I am starting to think that getting possession early, even if it means waiting a few months for viewings etc to get back to normal, is preferable to continuing with another 12 months ‘hassle’. So, I feel relaxed, and far from desperate to secure another AST at any cost. I have made a reasonable reduced offer but will not be bullied lower.

                    Comment


                      #11
                      Maybe advise them that the rents will go up upon renewal but will otherwise stay as they are, doubt they will say any more after that. They I expect they while at least since its difficult to look for a new place at this time.

                      Comment


                        #12
                        From the sounds of it, I don't think your tenants are using the coronavirus situation to get out of paying full rent (to an extent). They're obviously just trying to negotiate what they feel is a fair rent in the market. You've said your property is high end and based on your previous postings on different threads, you have mentioned £2500 per month and I'm assuming this is the same tenant.

                        I assume high end properties tend to have a bigger variance in rent than other sectors of the market (could be wrong). So is £2500 per month still comparable to the current market.

                        There seems to be quite a bit of faux outrage from some for a situation not every poster is not going to know the ins and outs of. I also find it intriguing that a lot of people get offended or bent out of shape when tenants negotiate rents. Why is that? Especially when I'm sure when you buy a property you don't just accept the price the propriety is marketed at.

                        Comment


                          #13
                          Welshie - thanks for your input. Your comments would probably be apposite if we were desperate to let again for 12 months. We are anything but. We offered a 12 months AST to (a) assist the tenant and (b) help us in the short-term (e.g, 3 months). We are now regretting our offer and are sticking to our definitely reasonable reduced offer or will allow the tenancy to become periodic at the existing monthly rate. However, we are relaxed with (a) them agreeing to reasonable terms for 12 months (b) a Statutory Periodic Tenancy based on the existing monthly rate or (c) the tenant complying with our s21 notice, issued in early March, before the new regulations. I’ve left the choice up to the tenant.

                          Comment

                          Latest Activity

                          Collapse

                          Working...
                          X