Covid-19 Bounce Back loans for property businesses16:06 PM, 5th May 2020
About 3 weeks ago 46
My tenant is an European national who has a holidays business across Europe. He tells me it has crashed due to Coronavirus and he is struggling to pay the rent and it is already 30% short this month. My agent has already started their automatic debt chasing process which used to include interest charges..
I give marks to the tenant for forewarning me of his predicament and explaining he has recently made a big investment that has overstretched him so he has no reserves at the moment so its back luck timing. As an aside, its a premium property and I think he should downsize but he has been there a few years now and guess he is happy there. Originally I took a risk since he was fresh from Europe with no credit rating but I think he values what he has now.
He is quite honest and has been an accidental late payer (due to funds coming from abroad) but as a landlord I like to do things by the book and keep a respectful distance and not be seen as offering favours that could count against me in court.
However, I am interested/willing offering some credit e.g. only 50% is payable for 2 months, then it rises to 100% for a couple of months and then maybe 150% for 2 months to bring the account up to date.
However, does that put me at a disadvantage if it went wrong and I pursued the Section 8 (well no Section 21 anymore) and pursed a small claims case for at least part of the outstanding? I presume the magistrate will not be too sorry for me either?
Other than getting something in writing that the agent could add to the contract, how else could I formalise this?
Or, I could play hard and use this as a reason to claim Section 8 breach now we don’t have Section 21.
What would you do?
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