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 Monty Bodkin

15:37 PM, 18th April 2020, About 2 years ago

Reply to the comment left by James Nelson at 18/04/2020 - 14:59
What would you predict the fall will be ? The stock market is 25%+ down. Why won’t the housing market do similar ?

Using your logic, the stock market went 45%+ down last time and the housing market 15%.
Therefore a 25% stock market fall = 8% housing fall this time.
-Maybe your logic is right! That doesn't sound too unrealistic.

by Monty Bodkin

15:49 PM, 18th April 2020, About 2 years ago

Reply to the comment left by Monty Bodkin at 18/04/2020 - 15:42
Edit: Figure 1.12

by Alan Wong

15:53 PM, 18th April 2020, About 2 years ago

The fact is supermarkets are putting prices 'up', stores are putting prices 'up' during a crisis. Private hospitals are full and getting paid 100% from Nhs funds (our taxed money). What kind of logic is it that people expect private housing providers to provide 'free' housing while we do not even get £1 of help from the government and have to pay our usual monthly outgoings in order to continue provide private housing to individual and families? If the government expect private housing providers to provide free housing during a crisis, should we all ask for free supermarket groceries during the crisis? We all go into Asda and take our weekly shopping for free? And all secured, unsecured loans, credit card balances, mortgages to be free too for 3 months or during the crisis period? Come on no one is as rich as bankers with billions in profits year on year so if anyone is to help it is the bankers. Fair's fair. Thing is we don't hear any help from the bankers, why?

by Gromit

16:10 PM, 18th April 2020, About 2 years ago

Reply to the comment left by Monty Bodkin at 18/04/2020 - 15:49
Thanks

by Clint

16:34 PM, 18th April 2020, About 2 years ago

Reply to the comment left by Alan Wong at 18/04/2020 - 15:53
I guess we will be ignored and bullied as long as we are landlords as there is no way that we can go on strike or something similar. I cannot even see establishments such as the NRLA being able to do anything as in reality, they too are powerless. One must find a strategy to hurt the government policies in some way.

by Jonathan Clarke

2:18 AM, 19th April 2020, About 2 years ago

Its been better than I feared for me. My East Europeans are all paying . They were exemplary before covid and have carried on in that same vein. All my LHA are direct to me so no problem . Some cant top up for now. My 2 UC are direct to me no problem. About 5 workers have genuine difficulties and I`m working plans with them. And there are one or two who are taking the P as there always will be . But my memory is long . I tell them all. Think about 6 mths down the line not just today. I may have some difficult decisions to make then because of covid. I know it hard for you and its hard for me . Lets work together and keep each other in our respective good books as we have been for the last few years. The tone is set and mutual respect I hope will emanate from that . Time will tell

by Anne Noon

7:38 AM, 19th April 2020, About 2 years ago

Reply to the comment left by Prakash Tanna at 14/04/2020 - 12:05
Exactly, my son has had a 20% reduction in his pay, although he is still working from home. He says he is saving lots of money despite having this reduction. Several people I know on furlough have said the same. So no one should be asking for a rent reduction who is on the 80% scheme. I have one person who has said he is waiting for his self employed payment and is fully aware of the implications. Another asked to stop paying, so I spelled out the implications of his not doing so. He has paid most of the rent for April at least, but if only he fails to pay for 6 month (it is an HMO) then I am in loss. But my agent is negotiating between 50 and 70% payments from tenants- which would annihilate my income. He must have some very rich landlords if they can afford to do this. I am a pensioner and rely on my rental income and state pension for a living ( carefully planned for since my mid 20s). I had planned to sell most of my properties by the time I reached retirement, but have not been able to do so as I would have insufficient returns to pay CGT. I also have a couple of holiday let properties- one of which was just on the point of exchange on Lock Down day, one of which the sale fell through just before Christmas. So 2 sales fallen through - 3 empty properties ( one of which has 4 people wanting to view and rent it, and has someone interested in buying it, but agent is not allowed to show people round even though it is empty) But despite this all, I am feeling quite chilled about the Lock Down as it has given me the opportunity to catch up on refurb work on my own home, which has been neglected for nearly 3 years whilst I carried out a renovation project elsewhere. I just hope that I can hold out until things start to move again. So my best wishes to all those suffering landlords out there.

by Marie

9:07 AM, 19th April 2020, About 2 years ago

Reply to the comment left by Peter Lassman at 18/04/2020 - 10:20
Some of us have leasehold properties and they come with service charges which can often be higher than the mortgage costs. Nobody is even talking about that.
Tenants seem to think that the government is in charge of mortgages as I also have had a comment from a tenant that the "government" has given a 3 month "holiday". I think they see what they want to see.
A lot of tenants are no worse off because they are still being paid, working from home with fewer expenses. This particular tenant was telling me his expenses were higher being at home but didn't specify why? Heating costs?
The whole scenario reminds me of 2008 and the crash. Everybody wanted a cut in their rent payments regardless whether they were affected personally or not. I had two separate tenants back then that after having had a reduction promptly went on fancy holidays.

by Ingrid Bacsa

16:28 PM, 28th April 2020, About A year ago

Reply to the comment left by john mcghee at 14/04/2020 - 10:46
John . Im having live in landlords in every house. Think about it - they are then lodgers but you dont need to be there often and just lock the boxroom for yourself. The tenents aee then not protected by shorthold tenancies and you keep control. You can appoint a landlord of your choice if you wish.

The new mediation system for "Landlords" wont make a dent since tenants have to agree voluntarily. So we pay £540 to stsrt mediation. After that we loose . Which of your eastern tenants will liaise at a mediation? Its a joke.


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