Landlords taking the hit to support tenants

by Property 118

0:01 AM, 21st May 2020
About 3 months ago

Landlords taking the hit to support tenants

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Landlords taking the hit to support tenants

Private landlords have been willing to take a temporary hit to rental income to support tenants struggling as a result of coronavirus according to a survey of over 4,500 landlords by the National Residential Landlords Association.

90% of landlords who had received a request for support from a tenant had responded positively. This included offering tenants a rent reduction or deferral, a rent free period, early release from a tenancy or a refund on service charges included in rents for homes of multiple occupation. Of all the landlords surveyed, 44% had received a request for help.

Over half of landlords have been affected in some way by the impact of the virus on their tenants with 54% having experienced some combination of rent payment problems or unanticipated periods when properties are empty. The survey finds that 60% of those landlords who have declared rent arrears have experienced at least the equivalent of one month’s loss of income across their portfolio.

The figures are supported by a large number of case studies the NRLA has received from landlords seeking to support their tenants which has included free or substantially discounted accommodation for NHS workers, and landlords pro-actively assuring tenants that their tenancy is not at risk.

Ben Beadle, Chief Executive of the National Residential Landlords Association said:

“This research proves that the vast majority of landlords are doing everything possible to support tenants through difficult times. To suggest otherwise is needless scaremongering and serves only to heighten anxieties for tenants when we need a spirit of co-operation.

“We are continuing to work with landlords and the Government to sustain tenancies through the immediate crisis and beyond.

“As Ministers consider their next steps regarding the ban on evictions, they should not make it more difficult to take action against tenants who may be committing anti-social behaviour or domestic abuse, or where they are wilfully withholding rent which they can afford to pay.

“We need landlords who are going through a difficult time to have the confidence to stay in the market. Otherwise we are only going to end up with a worsening housing crisis as more tenants chase fewer properties.”



Comments

Hardworking Landlord

11:24 AM, 21st May 2020
About 3 months ago

We hear nothing about supporting landlords that have tenants that were in arrears pre-covid. I am supporting my tenants where needed, but what about the one that now owes me 5 months rent and is celebrating because I can't proceed to evict him. This is not only causing stress & hardship to me and my family, but also limiting what I can do to help the good tenants we have. If the government makes another 3 months extension to no evictions, they have to take these cases into account, but is anyone pushing for this, and is anyone listening?

Frederick Morrow-Ahmed

13:21 PM, 21st May 2020
About 3 months ago

Do landlords responding positively to tenants' request for rent reduction ask to see documentary proof of current versus previous earnings and carry out an affordability assesment, or simply accede to the tenants' request?

Anyone with experience in this matter?

Ashleigh

15:11 PM, 21st May 2020
About 3 months ago

Reply to the comment left by Frederick Morrow-Ahmed at 21/05/2020 - 13:21
I have had two of my tenants contact me quite early on in the lockdown suggesting that they were going to have problems paying the rent in the coming months. I told them I was happy to support them during this time but needed to know in writing their financial situation, inc why they couldn’t pay their rent and what they were doing for themselves in terms of claiming any benefits they may be eligible for. I also explained that any reduction or non payment of rent would be treated as a payment holiday and would expected to be paid back in the future by way of a payment plan. Subsequently, I haven’t heard any more from either tenant and the rents have been paid in full! I am happy to help and support my tenants if they need it but you will find that some will try it on? Ask the question, if it’s a genuine case they will be happy to answer!

Penny

13:01 PM, 22nd May 2020
About 3 months ago

My friends tenants have not paid rent for 13 months. First hearing to take back possession of his property was a 15 minute court hearing but the magistrate was waiting on a phone call so it finished in 10 minutes and court was adjourned. Second was a direction hearing for 30 minutes and nothing was resolved there either. Court adjourned. On both occasions the court made a judgement for the tenant to pay the rent and a small payment to cover the arrears. No payment has yet been made. A loan had to be taken out to cover the mortgage of the property. In the beginning the landlord and tenants (a couple) got on well and they kept promising to pay but in the end a Section 21 was served. Then a Section 8. And here we are. Absolutely nowhere. Very frustrating and being a new landlord he is disheartened with the whole business. The tenant wins if the property goes to repossession. They can stay longer all the time living rent free.


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