I've just written to my tenants and told them not to pay any rent this month and that its a break not a deferral.
Given the enormous amount of free time I'm going to have on my hands I'd been ruminating on how to make myself useful - run errands for neighbours... the local foodbanks need to start delivering rather than have people come to them and I have a van..... some of the local farmers here are in the age bracket where they should self isolate so I've offered to do things like collect feed and do anything else that requires a bit of human contact. But the absence of any mention of rent yesterday despite all the reassurance offered to mortgage holders it seemed like I could do something more fundamentally useful by sending a two-line email.
Done similar with my tenants - let them know I have room to be flexible on rent should they need it. They work in hospitality and one of the couple is stuck in another country so they could well end up in money difficulties. Both them and I are lucky I guess that I have the ability to do this.
Waiting to hear from my tenants about their situation then if needed will apply a rent break for a couple of months or so.
I've messaged mine, but actually unless the government sort something I'm knackered... Although I have tenants in my 1 bed house (interest only mortgage as it's all I could afford), I rent a 5 bed house with my partner. We're both self-employed, 5 kids between us. I'm pretty sure it's going to be a tough few months (no sign of a text/letter from my landlady yet!).
While we are on the topic what would be a fair amount to reduce the rent by if my tenants are in money difficulties? Rent is double my outgoings on the flat ie I make several hundred a month profit. I do not want to lose good tenants but losing that few hundred a month would hurt me financially ( but not put me into any difficulties)
Thoughts?
Thoughts?
Is the rent only double your outgoings on the flat??
Is it still mortgaged?
If I was in your position, I would look at a temporary reduction to a level where I could cover my costs plus a bit more as a contingency for repairs etc.
It makes sense to all, as I understand it, even if you were an evil landlord, who wanted to evict them due to rent arrears, you aren't allowed to during the crisis. Support your tenants.
(no sign of a text/letter from my landlady yet!).
I’m a tenant myself as well as a landlord. Our agent is the acme of thoughtlessness. It wouldn’t occur to him for a second. My guiding principle as a landlord is to think what he would do in a situation then do the opposite 🙂
but losing that few hundred a month would hurt me financially ( but not put me into any difficulties)
think of the long game
Holding off contacting my tenants until government guidance on benefits and protections settles over the next couple of days. Don't want to end up contradicting or backtracking. As luck would have it most of my tenants work in either NHS or food/supermarket supply chain so money shouldn't be the problem for now. Looking like refurb on two properties flooded before Christmas might grind to a halt though.
Is the rent only double your outgoings on the flat??
Is it still mortgaged?
Yes - outgoings half of the rent
Still mortgaged but only a few months left. so monthly payments are low but I have put £12000 into the property in thelast couple of years
So down to outgoings plus a bit would seem fair? That would be half market rent 🙂
Ta
Its hard to see the fair answer to this. Obviously being good to the tenants is right - but how good?
Its hard to see the fair answer to this. Obviously being good to the tenants is right – but how good?
Will they qualify for housing benefit?
If you are charging a fair rent at the moment and this will be covered by housing benefit, then why do you need to reduce it?
If however, they will be left clocking up the rent arrears, if they have reduced income, will they ever be able to pay it back?
It's going to be interesting what happens to the property market after this shit show is over. It's entirely possible that property prices crash and correct themselves, which will also mean a reduction in rental values as well.
I just emailed mine saying if needed we can sort things out, ie, don't worry.
Don't want to be -ve but these mortgage holidays are deferrals on an asset the lender has a charge on, ie, don't pay surrender the asset.
No idea what Boris will propose but some tenants must be seriously worried.
I doubt they qualify for housing benefit ( relatively recent immigrants) and anyway that is well below the rent! ( despite the rent being well below market rate)
I would not be expecting them to pay back rent arrears. I would however expect any reduction to be temporary - like 6 months or so but who knows
They say they are fine this month - so rent as normal. Next month probably down to cost to me plus £50 - 100 if they are in difficulties.
I'm a tenant and just had to inform my landlord I'm only getting paid half my salary. My wife is still on full time hours for now. I would wait until government advice but a friendly email will help. I had an interview this morning and my landlord has asked what kind of skills I have so I'll send them my CV. If you really can do without the rent go for it, as a rent holiday is just going to compound the problem.
I'm holding off any decisions because I need to hear what (if any) government guidance there will be and what situation my tenants find themselves in.
One is a commercial decorator, I'm hoping he has lots of work... One is cleaning manager of local hotel, she may be out of a job.
Cheers Tails and good luck. It's always best to preempt the situation rather than wait for any Boris announcement.
The tenant landlord relationship is a funny one, yes it's a business but we need each other. One of my tenants has been in his home for over 10 years, of course I m happy for him to stay as long as he likes.
Not all tenants are the same though, I have been called all sorts over the years.
Aww - the accounts dept at the letting agency just called me up to tell me I'm nice 🙂
A suggestion - If you are going to be flexible with tenants, don't start messages with something like, ooo, I don't know:
"If you think you might have problems paying the rent, let me know".
Mebe start it with:
"If you think you might have problems with income to pay food and other bills, let me know".
If you want your tenants to start planning to receive a section 21 eviction, start it with the former.
HTH.
Aww – the accounts dept at the letting agency just called me up to tell me I’m nice 🙂
Nice
Some folks who have cleaners here have started doing similar. It's just not worth the risk to have people come in but they still need to live. Government may cover it long term but with prices going up in the shops it all helps.
Benefits will kick in for many that find themselves in such a low-income situation that they need them.
If you feel compelled, even if not at as generous as the evil-landlord Maccruiskeen as providing a month off, let your tenants know that if they do have to claim Universal Credit (very unlikely they'll be claiming Housing Benefit) that you understand that it's paid in arrears and therefore will possibly be an interruption to their normal payment cycle to you - and to just keep you informed of what's happening, as they normally would during any relevant changes in their circumstance. There may also be a shortfall depending on the Local Housing Allowance rate - that's up to you how you deal with that of course. More info here: https://www.gov.uk/government/publications/universal-credit-local-housing-allowance-rates
This is also a very useful site for anyone finding themselves experiencing Universal Credit for the first time, including landlords. https://www.understandinguniversalcredit.gov.uk/
Also waiting to her if our tenants need help .
We have a bit of flexibility so we ll see what happens .
hm, I've actually no idea what my tenant does or how the rent is paid, but I know she has a pretty sick lad and will be quite worries. Might start a conversation with the agent anyway.
Haven't spoken to my tennants yet, but just had a conversasion with my wife and said that we could be flexible if needed as long as we're not out of pocket. our mortgage is about half their rent, so as long as thats covered it'd be ok for a few months.
I'll wait to see what the ins and outs are and then speak to our tennant. Although I also don't want make so they think they can take the piss. Which I don't think they would as we know them quite well. Our kids went to the same school.
Yes just heard back from mine he s ok and WFH. Funny really we have no contract but a mutual understanding we both want a quiet life. I only visit every couple of years, been there 12 years now. I always thought if he ever had any problems I would give him a rent holiday.
The others I am afraid have proved the polar opposite so everything done by the letter of the law.
So any tenants reading just be nice and honest with your landlord, you never know when you may need a favour.
I’m looking for a bit of advice. It’s complicated.
Me and my wife rent a flat near Cambridge £850 per month I can leave with a months notice. They’ve been good landlords even though it’s around £100 over priced.
My wife earns around £1500 per month and can work from home or even possibly her native Brazil (that’s another issue as the visa is coming up with all its earning requirements)
I earn around £1500 a month but I’m now on half pay so £750. This will drop further if/when I get sick. I’ve been applying for jobs.
Option 1 Stay put - At the moment we are going to try and carry on, I’ve spoken to my landlord who has said we can defer some of the payment but this just punts the problem down the road. They are keen to keep us as we are clean and pay on time.
Option 2 Sub let - Rent the other bedroom after asking the landlord. We can hopefully keep the flat. Problem is my wife then doesn’t have a place to WFH and we have no room to go to if we get sick.
Option 3 Rent a room - Rent a room from my wife’s friends. All the bills are the consolidated. Negatives are we’ll be moving stuff and there is the possibility of rifts when people are sick.
Option 4 Brazil - Wife goes back to Brazil whilst she can and works from there providing her employer agrees. She’s then close to her parents and I’ll go to my mums for the time being. Save money but will stretch the marriage a lot.
Can’t imagine UK Gov will show any kindness with our visa process so that’ll be back to square one if I can meet the earning requirements! #
Thanks for any advice it’s funny hearing some of the landlords are tenants. You’re human after all. How’s your battle with Edinburgh council TJ?
worked in a rental property on behalf of the project manager,the owner hasnt paid the rental company,for work done,so project manger hasnt been paid so we havent been paid, and now no tenants either
Will cross that bridge as and when.
Rent only really covers expenses so not something I'm pro actively pushing.
However good Tennant so if he needs help I'll do what I can.
How’s your battle with Edinburgh council TJ?
In its 18th year now and in stalemate with me effectively having offered a settlement, rejected by them, I am daring them to take me to court. PM me if you really want to hear full the story to date
Tails - I would not make any decisions until you sus out the stuff coming from government over the next few days about rentals.
Thats my tenants just been laid off. I have told them next months rent 1/3 of the usual. ( so effectively this month and next month are 2/3 of normal) Then we can talk again after that - if he gets benefits ( she is stuck in Poland) then we will take as much as benefits give them. If they cannot get benefits we will go down to what it actually costs us - around 40% of normal rent
Seems fair. Gonna hurt us a wee bit loosing several hundred pounds a month but only our luxury money.
then we will take as much as benefits give them
make sure that you tell him not to say anything about your temporary discount arrangement, pretty certain that will reduce what he receives.
And nice one, very decent of you.
Tails - you could rent the spare room on a nightly basis to get some cash in. It's tax free up to 7.5k pa.
Also, if I were you I would get the rent down to market levels. To replace you the landlord would be paying c 10% annual rental. Assuming you are not mid contract of course, I read that at 1 months notice you have the flexibility.
Good luck, I would stay in the jobs if I were you.
Benefits will only pay 2/3 of what we charge them normally anyway but yes - he will apply for benefits using the usual rent!
Its nice to be nice and also they are good long term tenants so we don't want to lose them. Its just lucky that we are usually heartless profiteering bastewards so have the room to drop the rent 😉
The advice from the Scottish Government has been 'Talk to your landlord'
I think it should have been 'Landlords - talk to your tenants'
In the rest of my working life - across the board - clients, suppliers, facilities and organisations are putting out open messages to say 'Yes this is happening' 'Yes we're still here' 'This is how things are effecting us / may effect you'. They are saying whether they are able to keep an office presence and how to contact them if not. They are saying if they able to maintain services and that they'll notify customers if they can't.
My landlords - who are also the suppliers of my heat and hot water via a district system / biomass thing.... have said nothing. Rent issues aside the boiler will run for two or three days between chip dliliveries and the guy that does that is in his 70s and his wife is in poor health. So of course we've had no word from the landlord as to whether they've considered that or have any plan in place.
Personally I don't see the point of wait 'til things have gone wrong and then say you can help.
I rent out a 1 bed flat to a couple - one a teacher and the other works in IT. However, due to an unfortunate set of circumstances the rent from this property is my only source of income, so I am potentially in a more vulnerable position than they are, unless I terminate their tenancy and sell the property, although I doubt property sales are a priority for anyone at the moment. Hopefully their employment is reasonably safe, so I haven't contacted them about have a rent reduction or rent free period if they lose their jobs.
My work is linked to the rental sector - an agent I saw yesterday was ringing all their tenants and asking them to speak to them as soon as they lost pay/jobs so that they could find a way round it with the landlord for them before the debt got too big. But that was only one agent out of six I saw yesterday. If I ever ended up as a landlord I'd hope my agent would be that considerate for both the landlord and the tenant
Tails – you could rent the spare room on a nightly basis to get some cash in. It’s tax free up to 7.5k pa.
Thanks that’s interesting, just not sure my wife will be keen. Potentially very easy as there is a lot of construction near by.
Also, if I were you I would get the rent down to market levels. To replace you the landlord would be paying c 10% annual rental. Assuming you are not mid contract of course, I read that at 1 months notice you have the flexibility.
Good luck, I would stay in the jobs if I were you.
Thing is they’ve not offered and unless we can move to a place with a 1 month release clause it could be worse. The company I applied for was before this shitstorm but obviously if I get it I’ll ask them questions.
