12 out of 13 tenants asked for “Rent-Free Holiday”?

12 out of 13 tenants asked for “Rent-Free Holiday”?

9:10 AM, 14th April 2020, About 2 years ago 72

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I have 13 single tenancies (family homes) in Reading. All houses are rented to Eastern European families. All tenants except 1 (in total 12 tenancies) contacted me in last 2 weeks and refused to pay me. None of tenants in question appear to know each other.

The reason given by all 12 tenants is:

“The government has decided that, Banks must give you holiday for 3 months, in return we must not pay you for 3 months” When I attempted to explain meaning of holiday does not mean complete waiving off rental payment it simply means deferring payment depending on their circumstances, which means they must reach another agreement as to how they will make payment after 3 months in addition I requested proof of their income being impacted. They have all refused to provide any proof when I raised the possibility to taking matter to Court, most of them suggested I will not be able to do this as all Courts are shut and government will not allow this.

This clearly shows that government has caused a huge confusion and all of tenants appear to think regardless of their circumstances this is “Rent-Free Holiday” I am very worried about this as even if my Bank allows me to take payment holiday which they will, nonetheless, Mortgage Company will simply allow Mortgage payment holiday, but will not replace rent.

My main source of Income is property income, which pays for my Tax, Maintenance and my Livelihood. In addition, if these tenants fail to bring their account up-to-date after 3 months then I would have lost £1000’s and would accumulate further Mortgage debt.

Simon



Comments

by Annie Landlord

13:26 PM, 15th April 2020, About 2 years ago

Reply to the comment left by Ingrid Bacsa at 15/04/2020 - 10:32
Scotland ceased their version of S21 and brought in what is often termed an 'indefinite tenancy' because it has no time frame, ie no initial period of 6 or 12 months. There is, however, a long list of grounds for which the landlord can serve notice, one of which is in order to sell the property. England and Wales may go down this route, but currently both S21s and S8s can be served, provided all the criteria are met

by Paul landlord

20:21 PM, 15th April 2020, About 2 years ago

Reply to the comment left by David Price at 15/04/2020 - 09:46
Hi there David.

I would gratefully take up your kind offer of the pre action protocol stuff.

How do I obtain that from you?

Many thanks

Paul

by Simon Hall

9:49 AM, 16th April 2020, About 2 years ago

Reply to the comment left by Monty Bodkin at 15/04/2020 - 11:11
Monty, thanks for your comments. I am rather offended by Ian's comment as it easier said than done. He is having a stab on my wounds. Having spoken to my lender, I have had no sympathy and they have simply referred me back to their terms that, regardless of the fact I receive rent or not I will remain liable for Mortgage payments. In order for them to consider, Mortgage holiday I have to present them with array of information before it is granted. In line with my broker's recommendations I have around 6 months reserves in my savings account which I will utilise. However, the concerns I have around 6 of the tenants have used exactly same line of defence:

"You will be lucky to get rid of us within 2 years" This clearly goes to show that someone somewhere has advised them (same organisation) how long eviction process is likely to take. I understand someone commented above that there is an advice centre which specifically caters for Eastern Europeans. My real worry is that if lender does not approve my request after 6 months and I am unable to evict them for 2 years I will lose all properties.

Also at least half of them stated that, if I visited their property to demand rent or for any other reason they will call Police. They are NOT prepared to negotiate at all.

FYI, This part of Reading only attracts European tenants. I do not have any preference for any particular heritage, I simply rent to most suitable tenant at the time of renting.

by Ian Narbeth

10:41 AM, 16th April 2020, About 2 years ago

Simon
I am sorry that you find my remarks offensive. I was trying to be helpful. I work as a solicitor so you might think I have every reason to push for legal remedies and to encourage landlords to go to law. If we had a well-functioning legal system that was fair to landlords and that saw defaulting tenants evicted promptly then a legal solution might be the answer. We didn't have that system before the COVID-19 lockdown and we don't have it now. As I said in my first post the situation is even worse than it was last year.

Unless you can negotiate with your tenants, you are unlikely to get paid or get them out anytime soon. I am surprised to hear they won't even talk to you and have responded so aggressively. Do you think you might have done something that has contributed to the breakdown in relations?

Possible way forward - do you have a Romanian friend who might act as an intermediary and speak with them in their own language?

My comments were not meant as a criticism and certainly not as a stab at your wounds. Far from it. I will be very happy if you can get your rents paid. But I would not be doing you a service if I encouraged you now to start issuing s21 or s8 notices in the current climate.

by Simon Hall

13:40 PM, 16th April 2020, About 2 years ago

Reply to the comment left by Ian Narbeth at 16/04/2020 - 10:41
Thanks for clarification Ian. I have not really given them cause for breakdown in relationship, other than simply being assertive in relation to due rent. I have had rental business for period of 19 years and I have not experienced this type of dilemma. In fact, I have had 100% record for rent collections. As a matter of fact, I have had great relationship with them all. I suspect they want to exploit current legislative system which is tilted in favour of tenants and current climate is certainly giving them 3 months free holiday and the rest.

I also have a friend of mine in Slough and he has shared similar line of attack from tenants. Again all Eastern Europeans and 4 out of 6 tenancies are refusing to pay him with a defence slightly different.

"The government is waiving off 3 months Mortgage in this case you must waive off 3 months Rent" When everyone is using same line of defence then it becomes rather telling that it must come from 1 source.

by Ken Clark

9:18 AM, 18th April 2020, About 2 years ago

Reply to the comment left by David Price at 15/04/2020 - 09:46
I would appreciate a copy please David

Cheers

by Ken Clark

9:33 AM, 18th April 2020, About 2 years ago

Reply to the comment left by Neil Patterson at 16/04/2020 - 15:40
Thank you

by Peter Lassman

10:20 AM, 18th April 2020, About 2 years ago

It’s an Appalling situation to be in, being a small Landlord myself 10 properties, I sympathise with you Simon as we still have fixed costs and bills to pay and it seems a lot of people who are in are on furlong are actually better off at the moment as they have no travelling costs and actually saving money, personally I think you should be taking a hard stand, first send a letter explaining why they are wrong with a link to a Government website that explains how it really works, then issue the correct legal paperwork if you get no reply or money, and then ASAP and time allows evict them all, let them know it’s coming and do not back down as either way you will be out of pocket and I’m sure once this is all over you will find better tenants, hope you get it sorted Peter


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