Tenants struggling to pay rent...payment plan or move them on?

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    Tenants struggling to pay rent...payment plan or move them on?

    I have a Tenant Couple who have informed me this week that they can not afford the rent this month. Naturally they have blamed this on the Coronavirus however they have paid their rent 1 week late often, sometimes longer so have struggled in the past.

    I kindly said I would help with a payment plan, give them 1 month payment holiday then catch up over the next 12 months which I thought was fair. I also informed them of the Government Furlough Scheme, Self-employment Grant and Universal Credit options.

    The responded by saying that their work has been cut in half, and the schemes do not apply to them. They are scared of accepting my plan as they may not be able to pay back the 1 months missed rent over the 12 months, giving me the impression they are simply struggling to pay the rent - Coronavirus or not!

    They have asked to pay half rent for 2 months then re-access the situation. However I fear we may be going down a slippery slope.

    Any Suggestions?

    #2
    I would wait to see if the government extends the ban on evictions till October or even December and then decide. We will know soon. At the moment no evictions till 25th June.

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      #3
      agree with above. The June date is a big one for all of us waiting to evict those 'who are trying it on' already in arrears etc. If its extended a lot of us will have to issue new sec 21's as well as they only have a 6 month lifetime. Its no good threatening them with eviction if you find you can not do it so I would wait it out a few weeks.

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        #4
        It is a disgrace that tenants don’t pay rent and landlords are stuck for months with these cheats. I am taking my tenant to small claims court. He seems to be very relaxed about it. He won’t pay anyway.

        If the tenants cannot pay the full rent they should find a cheaper accommodation. I would try to evict them if possessions restart at the end of June but I doubt it. If they pay only half it is already good. Better than nothing.



        Comment


          #5
          It is a difficult one, asking them outright if they think they will be able to afford the rent in the future is something i would do, if their hours have been cut is this for good or just for now ? If for good then they are on a slippery slope, once the furlough scheme ends we will really see the full impact of this.

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            #6
            How much do you know (for certain!) about how they earn their money normally. Why are they ineligible for government support schemes? It does sound, though, if they have struggled in the past to pay rent on time, that they may simply be living 'above their means', even without Covid. So difficult to call it between 'compassionate' and being 'a sucker'......

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              #7
              If they're struggling to see how they could repay the month's rent holiday, it's worthwhile talking to them about what they intend to do.

              You need to be clear that you want the rent that's due to be paid and will take every step humanly possible to recover it.
              So they're clear that the choices are to move on or to pay rent - there's no middle ground.

              While it's not their fault their works been cut, it's not yours either.
              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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                #8
                If they have lost half their work but not all of it then it's very likely they will be unable to claim for loss. With the situation as it is at the moment I'd take the reduced rent for 2 months and then take another look. I know it may be postponing the inevitable but it may be a whole different world in 2 months time.

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                  #9
                  What you experts think that whether these tenants who are exploiting this cvd19 situation by not paying the rent at all or paying significantly reduced rent, will they get CCJ even absconds later with no contact information. And how about if the court hopefully reopens next month then won't they be primarily inclined to focus on more serious cases such as relating to coronovirus violations like anti social, domestic violence, national security etc? Will landlords really struggle to recover the rent arrears or will forget by learning a bitter lesson?

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                    #10
                    The tenant is the king now. They can stop paying, won’t move out and there is nothing landlord can do. I would take half rent and sit quietly. Doubt very much that the courts will restart repossessions in June. Maybe next year maybe never. Our properties are worth zero if you have a tenant who does not pay. Nobody will buy it.

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                      #11
                      You will be lucky if your tenants vacate the property. They can sit there forever and not pay they rent. Only tenants are affected by coronavirus but not landlords. Mine does not pay the rent and does not move out and ignores all the notices I sent. Landlords should be happy with anything the tenant pays. I am surprised that some landlords think they can dictate.

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                        #12
                        I can see the end result of all this shifting of power ....... a lot less landlords and less properties up and available for rent in the future, the tenants of the future will be the losers in all this.

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                          #13
                          Serve s21 NOW and action when possible, with a CCJ..

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                            #14
                            Hudson01 I agree with you. I was thinking of selling when I was made redundant last year but thought I would wait for current tenants to move before I made the decision. After this it's going. My rent is now my only income which has now been stopped. I only hope that the tenant hasn't purchased the caravan that turned up on the drive at the weekend - I will be spitting feathers if he has found the money to buy it when he can't afford the rent.

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                              #15
                              As I don’t have any hope for repossessions to ever restart I am looking into giving my property away for free now. Even this will not be easy. Maybe somebody can wait for years to evict the charlatan and has the money to pay for service charges and legal fees while the tenant is exercising his right to quiet enjoyment of his home.

                              Good luck to landlords who chase their tenants for every penny.

                              Comment

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