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

by Readers Question

9:10 AM, 14th April 2020
About 4 months ago

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

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

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

Smartermind

10:27 AM, 18th April 2020
About 4 months ago

Reply to the comment left by john mcghee at 14/04/2020 - 10:46
You are putting up your properties for sale, not demolishing them. When they sell, some other landlord or owner will house 14 "families". It's a bit of a merry-go-round, but your threat of "homeless families" is an empty one that the government will ignore. The properties will still be there, just not owned by you.

James Nelson

12:24 PM, 18th April 2020
About 4 months ago

Those of you talking about selling , what are you expecting to get ? I anticipate the housing market to remain at a virtual standstill for quite a long time. I reckon prices could easily fall by 30% +.

I think if things get that bad that we ‘have to sell’ then things will be so bad that selling won’t be an option.

Am I being overly negative ?

Monty Bodkin

12:35 PM, 18th April 2020
About 4 months ago

Reply to the comment left by Smartermind at 18/04/2020 - 10:27
The properties will still be there

Short sighted thinking.

A lot of mine wouldn't be there in the first place if I hadn't built, renovated or converted.

UK population is still increasing.

Paul McCarthy

12:38 PM, 18th April 2020
About 4 months ago

Reply to the comment left by David Price at 15/04/2020 - 09:46
Could I trouble you also for a copy, sounds interesting and needed by many!!

Thank you for the offer to share

Paul

Monty Bodkin

12:39 PM, 18th April 2020
About 4 months ago

Reply to the comment left by James Nelson at 18/04/2020 - 12:24Am I being overly negative ?
Yes.
No one with a reasonable understanding of it is seriously predicting 30% falls across the UK property market.

David Price

13:03 PM, 18th April 2020
About 4 months ago

Reply to the comment left by Paul McCarthy at 18/04/2020 - 12:38
Hi Paul, Please see post by Neil on my behalf at 15:26 PM, 16th April 2020 (half way down page 5 of comments).

Clint

13:52 PM, 18th April 2020
About 4 months ago

Reply to the comment left by Smartermind at 18/04/2020 - 10:27I agree with you in that if John Mcghee sold his properties, it would make no difference in respect of housing the same number of people i.e. 14 families however, in selling his properties, the demand for building of new properties would make a difference.
In order to substantiate the above, if say 50% of the properties held by landlords were sold, there would be a glut in the market and property prices would fall although, the same number of people would be housed.
From the construction point of view with property prices falling or remaining stationary, it would be less attractive for more properties to be built and with the ever-growing demand for housing, this would cause an even bigger problem for the government so, if enough landlords sold up, the government would have to make it more attractive to stop landlords leaving the market

James Nelson

14:59 PM, 18th April 2020
About 4 months ago

Reply to the comment left by Monty Bodkin at 18/04/2020 - 12:39
What would you predict the fall will be ? The stock market is 25%+ down. Why won’t the housing market do similar ?

Do you think the banks will be falling over themselves to give mortgages to anyone who has been furloughed ? Or the self-employed who needed government help ?

Monty Bodkin

15:08 PM, 18th April 2020
About 4 months ago

Reply to the comment left by Clint at 18/04/2020 - 13:52
I agree with you in that if John Mcghee sold his properties, it would make no difference in respect of housing the same number of people

Not wishing to split hairs but it would if they were all sold to owner occupiers.

Private renters under occupy by 14%
Owner occupiers under occupy by 52%

That figure is disproportionate to larger housing types but still works out around 10% less on typical rental types.

-Which is a heck of people when extrapolated across the entire PRS.

Gromit

15:16 PM, 18th April 2020
About 4 months ago

Reply to the comment left by Monty Bodkin at 18/04/2020 - 15:08
Monty
Can you let me have the source of those statistics as it could other useful information to use against such arguments.
But I guess in terms of "households" there's not a huge difference, except for HMO's (multiple households) being sold off to a single household

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