Blogger says tenants with Coronavirus should get 3 months rent free!

by Property 118

9:26 AM, 5th March 2020
About a month ago

Blogger says tenants with Coronavirus should get 3 months rent free!

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Blogger says tenants with Coronavirus should get 3 months rent free!

Richard Murphy of Tax Research LLP, a Professor of Practice in International Political Economy at City, University of London and regular columnist for AccountingWEB.co.uk, claims Landlords should bear the cost of Coronavirus and provide three months free rent to tenants who contract Covid-19.

Murphy claims: “As a matter of statutory right any tenant should be provided with a minimum three-month rent-free period to ease the stress upon them whilst this crisis last. I would suggest that the grant of that extension should be automatic to anyone who does not make a due payment of rent on the required date during the period of the epidemic. They should be automatically granted this extension by the landlord without having to make any further application or to complete any additional paperwork.”

“I stress that the cost of this will fall directly upon the landlords in question. I am quite deliberately suggesting that they should bear the heaviest burden of dealing with the epidemic. The reason is simple and is that whatever happens they will still have an asset at the end of this period, and no other sector can guarantee that at present. As a consequence they have the greatest capacity to bear this cost. And, if it so happens that some landlords do fail as a consequence, the assets that they have owned will still exist after this failure and so the economy can manage the consequences of this.”

Murphy goes on to suggest that the other group that should carry the burden of Coronavirus is the finance sector, but only by offering a three month extension to loan or mortgage payments and not the total loss he seems to wish upon Landlords.



Comments

Dennis Leverett

14:17 PM, 20th March 2020
About 2 weeks ago

Reply to the comment left by Chris Sheldon at 20/03/2020 - 13:24
Thanks Chris.

JJ

14:39 PM, 20th March 2020
About 2 weeks ago

Reply to the comment left by Chris Sheldon at 20/03/2020 - 13:24So, you say that if you have landlord's insurance that you took out prior to yesterday that will cover you. The summer isn't a period when we get lots of respiratory infections; when we all open our doors and windows in the spring and let the stale air out the infections go away until next winter. That's why spring and summer are low risk.
Supposing your insurance is due for renewal in September 2020. If you renew then will coronavirus still be covered? Or will the insurers drop it for the forthcoming winter? Or will they hike the premiums?

Chris Sheldon

14:57 PM, 20th March 2020
About 2 weeks ago

Reply to the comment left by JJ at 20/03/2020 - 14:39
No Im saying if you had rent guarantee insurance prior to yesterday under the policy which lettingsupermarket use, you are covered.

Our policies which are in place currently will be renewed as if it was a continuation of cover, i cannot comment for any other insurers.

I think its pretty inevitable that RGI policy prices will be increasing when they go on sale again as insurers are potentially set to make a large loss.

JJ

15:08 PM, 20th March 2020
About 2 weeks ago

Reply to the comment left by Chris Sheldon at 20/03/2020 - 14:57Thanks for clarifying.
I think you are right in saying that insurers will make a large loss and premiums will go up. That won't be directly because of coronavirus; it will be because someone destroyed their jobs and put them in a position where they were unable to pay. And I think that will happen next winter.

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