"Rent Holiday" asked for by tenant

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  • Interlaken
    replied
    I agree with jta. Rent first. Issue a Section 21 now to make sure you don't get taken for a complete ride.

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  • jta
    replied
    My reaction would be that rent has priority over CC debts. I would expect the rent to be paid, the CC companies are far more likely to accept an 'arrangement' as long as she is honest with them.

    Leave a comment:


  • Claymore
    replied
    Wow, this is an unusual situation.

    You have to admire the woman's intentions by asking, rather than the alternative to just going ahead with her plan.

    It's a difficult one to call. Could you go and see this woman, have a chat with her and then go on your gut instincts? In all honesty, this is what I'd do - combined with Artful's suggestion in post 2.

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  • Hippogriff
    replied
    A 3 month rent holiday at a rate of £0 would be a big "no" for me. It's too much to ask.

    Kudos to you for even contemplating the possibilities. What you want is no arrears at all or the smallest amount of arrears... if the rent is £575, would a compromise of £400 for 3 months allow her to get back on track? If nothing is paid then the warning siren can be sounded and action taken.

    If that is kept to, then the amount to catch up would be much smaller, but you will know that you really helped (hopefully).

    I'd remain very wary. I just would. What worries me most is that you appear, from what you wrote about the Agent being the main conduit for communication, to not have a relationship with the Tenant anyway, so it's not like you have to tell the Tenant "no" face-to-face and feel really bad about it.

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  • grouse
    replied
    Originally posted by theartfullodger View Post
    Trouble is by going bankrupt she would no longer owe you the money.....
    This is very true, the money she owes you will be written off, and she will be instructed that she must not repay it.........

    This is from experience as I had an employee who went bankrupt. They had borrowed the money for the bankruptcy from a friend and were told not to repay it.

    They are no longer friends............

    Leave a comment:


  • Wannadonnadoodah
    replied
    Is there a deposit held in an approved scheme? After 2 and a half years do you really need to have this money set aside for potential damages to the property? Could you use that.

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  • theartfullodger
    replied
    Trouble is by going bankrupt she would no longer owe you the money.....

    Is she getting HB/LHA or pension credit & has she applied for DHP??

    Difficult: I had a tenant go bankrupt ('twas complicated..) but to be fair she knew she then had nowhere to go & was scrupulous about paying rent on time & in full.

    Dunno what to advise: But the only approach I would think about (I am not recommending this...) is saying you do not agree to any "rent holiday" but understand she will be late paying, will issue s21 & s8 (g8, 10 & 11 as appropriate) and if she does not stick to her proposed repayment plan will evict using s21/s8. It's a nasty old world.. You have the strong negotiating position as if evicted with rent arrears she very stuffed these days.... (? after going bankrupt would she still have rent arrears?? - but then the process takes a year or so,...)

    Good luck & hope it works out...

    Leave a comment:


  • teerev
    started a topic "Rent Holiday" asked for by tenant

    "Rent Holiday" asked for by tenant

    Good evening, I have recently found and joined this forum and this is my first post here, apologies in advance for the length of it.

    One of our tenants has just asked for a "Rent Holiday" and I'm not quite sure how to proceed as this is a new one on me.

    To fill in some details, this lady has rented one of our one bedroom flats for the last two and a half years or so at the rate of £575 per month, she is a pensioner and I understand that she is in receipt of some disabilty allowances as well.

    Her rent is up to date at the moment and she has always been on time with it apart from a couple of hundred pounds once when her bank made a mistake but she caught that up over the following three months.

    Unfortunately it looks like she has recently got into financial trouble to the tune of about 3-4K by foolish buying of stuff she did not need on credit cards, probably not that unusual for lonely old people. I understand that she has now cut up these cards but have no proof of that.

    She has been to see the CAB and they have advised her that her best option is to go bankrupt to wipe out these debts but that will cost her £705.00, this is money she does not have so she has asked our letting agent to ask us to giver her a "Rent Holiday" for three months to enable her to do this and to get her finances in order.

    She is suggesting that she would then be in a position to repay these arrears at the rate of £200.00 per month on top of her rent, by my reckoning this would take almost nine months.

    We do try to be caring landlords and have given several of our tenants help and support when they have had problems but we are very concerned that this lady may not be able to keep to this plan and would just be digging a deeper hole for herself and leaving us open to financial loss.

    We will obviously be discussing this with our letting agent but in the meantime, has anyone here been in this situation and if so can they offer me any advice, tell me what action they took and what the outcome was?

    I would also be interested to hear of any suggestions for alternative actions that our tenant can take as we will openly discussing this situation with her.

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