Mortgage free rental property and Coronavirus?

by Readers Question

10:23 AM, 23rd March 2020
About 8 months ago

Mortgage free rental property and Coronavirus?

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Mortgage free rental property and Coronavirus?

If the rental property is not mortgaged then there is no payment holiday, (for up to three months) for a landlord which 3 month’s monies could then be offered on the understanding this payment holiday benefit is to be passed on to the tenant.

Are we then saying that tenants get up to 3 months rent free? But what if the rent is the income needed by the landlord for their own food, utility bills, council tax etc

Is this a debt the owed by the tenant to the landlord to be added to future rental payments?

So confusing!

Judith


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Comments

Neil Patterson

10:26 AM, 23rd March 2020
About 8 months ago

Hi Judith,

The protection for tenants is that they can't be evicted during the next three months. However, they still owe the rent, but it will just be built up into arrears.

The same way a mortgage holiday if you had one would just be a deferred payment not 3 months free.

John Fowles

12:49 PM, 23rd March 2020
About 8 months ago

Hi Neil,
I agree with your interpretation but I don't think the government has made it that clear !

Denise G

13:23 PM, 23rd March 2020
About 8 months ago

The government hasn't really made anything clear tho' has it? The rest of Europe is watching our behaviour with horror and confusion as the media reports the highest ever number of visitors in Snowdonia, bustling crowds at London street markets, traffic jams on all roads to the South West - not to mention fights in supermarkets and yobs spitting at policemen etc. We are a rudderless ship - and, sadly when we are in the depths of this self-induced crisis in a couple of weeks, we should not be surprised if the rest of Europe decline to send us any help!

Tim Wedge

13:39 PM, 23rd March 2020
About 8 months ago

Agree it's not that clear, and I'm not sure it will be clear to all tenants unfortunate enough to be in this situation either. Things will get particularly bad if the 3 months are extended by the government.

BB

8:33 AM, 28th March 2020
About 8 months ago

I must sadly agree to all those comments above. A point I tried to get across to several friends when they referenced how China has dealt with this, and some of our Eurpean neighbors regards the successful lockdowns. How on earth can out society and citizens be aliken to China? Also most European cultures don't have the same aggressive, anti- authoritarian attitude.
Britain and many of the youth have a deep down hatred for police and laws, also we have a very different mindset and a rebellious streak in us.
I agree what Tim Wedge said, if this unnecessary in my opinion - total lockdown continues, you will definitely see a huge escalation in domestic violence, physical child abuse, alcoholism, drug abuse, social disobedience and large scale unrest.
The police won't have a clue and be vastly out numbered with very little powers or a concrete plan, as Government have 'flip flopped" with unclear rules and directives.

Mick Roberts

16:57 PM, 29th March 2020
About 8 months ago

Tell 'em this as for some of us who have always improved house for the tenant, we then need the money back eventually.

U can use my text if u like. Or parts of it. It may not seem nice for those who don't know me or my tenants, but I started to get my majority benefit tenants to try it on (Well 2 of them-The rest supported me & the some others were about to ask me before saying Thanks to explaining to them that moron Corbyn had misled them).

Some of you lovely people have been texting asking for a rent holiday cause of the coronavirus. Now if u all want a rent holiday, there will be no houses no homes in 3 months, simple as that. There's not a magic tree out there to pay your outgoings.

The comment you may have heard on the media this week has not helped tenants at all. Corbyn Labour Anti Landlord tripe saying tenants can ask for a rent holiday was aimed at workers who have lost their job & FULL income & got to wait for benefits which YOU ARE ALREADY GETTING, but some of u r rubbing your hands in glee thinking that was aimed at u.

And it was a rent holiday, some of u have interpreted that as Ooh baby no rent to pay. The workers still had to pay when they get back on their feet. Some of u have got into arrears with me before & took years to pay & some still paying off now years later. You text saying Can I have rent holiday cause of coronavirus, then u also don't say I'll pay next week.

Some of u have been with me over 20 years, most of u over 5 to 10 years. I look after u the best I can despite all the constant recent attacks from Council and Govt. But I will not look after people trying to take advantage and plunge me and u into losing your home.

If I get one more text from someone on FULL benefits asking for rent holiday, I'm gonna' seriously consider selling your home. Some of u will know I'm only keeping the houses for you as it is your home & I respect that.
Please don't exploit the Coronavirus for financial gain and put everyone's else's home in jeapordy.

If you've genuinely lost your job, ring me & we'll get u on the benefits u entitled to.
If u not earning enough, u claim benefits. If u getting too much to claim benefits, the Govt are saying u r earning enough to pay your rent, so u don't need benefits. It's either one or the other.

We're not a large financial institution, so not able to bear the hardship, that would be inevitable result of rental holidays, so please look towards Govt support, as it is them and Councils that resulted in the below costs.

Below is the extra costs which the Govt & Councils has forced upon us, which I've now had to pay since u moved into your home. How some of u think this can be paid with no rent in is baffling.

We now have to do Fitness tests on new rentals £150 each house.
Electrical Installation Condition reports organisation & implementation £300+ each house.
Selective Licensing £890 just for one house.
Legionnaires checks £70 each house.
EPC’s £80 each house.
Data protection checks £40.
Carbon Monoxide detectors & smoke detectors, when wired, £300 each house.
Getting registered with Information Commission officer £40.
Floorplans, Inventories £90 each house.
Landlord has to criminal check himself & has to prove he has Right to live in UK
Increased staffing admin behind the scenes.
As you’ve seen, checks/inspections on your houses now with smoke alarms-Should be much more detailed checks.
Consultant & Legal fees to keep pace with legislation & staff training.
Letting Agent costs for new tenancies & house swaps £70pm each house.
All the above is extra costs we din’t have when many of u moved in.

Landlords are selling in their hundreds due to the increase in costs & the burden of ever increasing legislation.
Landlords are being fined when they get something slightly wrong.

As a company, we are really struggling to keep abreast with these constant legislation attacks, so much so, some of u know all new ones/swaps, we are having to place with Letting Agent.

The biggest changes are Selective Licensing & Universal Credit. Costs an absolute fortune in time & money to keep on top of it.

There are many Landlords out there who aren’t compliant, who are becoming unstuck every week.

We have no intention of selling on you & want you for the long term. Please help us to help u.

Denise G

19:14 PM, 29th March 2020
About 8 months ago

Reply to the comment left by Mick Roberts at 29/03/2020 - 16:57That there is quite an aggressive and confrontational text.
I am mystified as to why you feel it is Mr Corbyn who has caused your problems when you then go on to list a raft of additional expensive stuff that's clobbered you (and the rest of us) over the last 10 years, when I seem to recall we had a Tory government that entire time!

Mick Roberts

22:08 PM, 29th March 2020
About 8 months ago

Reply to the comment left by Denise G at 29/03/2020 - 19:14
I agree. But the rest of me tenants say they glad I told em as they was believing the Corbyn Tripe.

Cause they was watching Corbyn saying they should all have rent holiday. Who else would I blame if the tenants said they heard Corbyn say that?

And yes, I'm not defending the Tories either as they previously wrecked welfare tenants lives.
But most of the anti Landlord stuff that has come in, it's no secret that the Labour lot have called for it and probably cause I'm biased with Nottingham Council being labour and wrecking tenants lives with selective licensing thinking they getting against the Landlord when all their policies have in fact made tenants lives much worse. More expensive and less supply.

Excuse me if I don't reply again as I'm not receiving comments alerts.

BB

3:45 AM, 30th March 2020
About 8 months ago

Reply to the comment left by Mick Roberts at 29/03/2020 - 16:57Well Denise G I must say you fared considerably better than I did, that is if you even managed to understand what on earth Mick's garbled, vitriolic rant was all about, and what had inspired this? Or in what context and connection?
I ve tried to understand many of his similar posts and his response to other members - it all ends up the same.

Mick Roberts

6:20 AM, 30th March 2020
About 8 months ago

Reply to the comment left by BB at 30/03/2020 - 03:45
Eh, If I manage to keep all me tenants in their homes after all this, I must have done some'at right. My track record at keeping tenants in their homes is very very good.
Not hatred so presumption wrong. Agree on the angst.

I've had many a landlords this last week use many of my words & the outgoings we have to pay out, to try & tell the tenants that the mortgage is not the only thing. And 90% agree with me. I'd say 100% of my tenants backed me once they saw the explanation of the rent holiday.

Let's not forget, let's rewind this to last Monday. All we knew was, that Corbyn had stood up in parliament & said Let's give tenants a rent holiday for 3 months. As we know he's constantly Anti Landlord, making it worse for tenants long term. Media picked up on this & if u not aware, there is now tenants signing a petition calling for rent holiday no small print, total rent off for 3 months.
I'm trying to keep tenants in their homes, not opposite way round, like some landlords.
Here is the petition that tenants want YOU to sign to say they don't have to pay rent, even if they get the BENEFITS TO PAY THEIR RENT.
https://www.change.org/p/boris-johnson-cancel-house-rent-and-mortgage-during-covid-19?recruiter=false&utm_source=share_petition&utm_medium=facebook&utm_campaign=psf_combo_share_initial&utm_term=psf_combo_share_initial&recruited_by_id=1a8e93d0-7069-11ea-9435-97efbb279337&utm_content=fht-20922249-en-gb%3Av12

I wun't dream of sending that text to the posher Letting Agent tenants, problem is u 10% against my words have no clue about the benefit market & the requests we get. Same as I wouldn't dream of telling you how to run your model.
Let's not forgot, I had benefit tenants start to ask to not pay their rent, when they already receiving the benefit to pay their rent.

Here is some words from some of my tenants once they got my text:

I've just had a HB tenant text the below thinking she could keep the rent cause of what Corbyn said, but now read my text, understands it.

Iv been thinking the same thing, do we have to pay ours who are on full benefits, but reading what you've sent out I agree with you, although it'd be nice to keep the rent lmao🤣🤣 all moneys owed will put us in rent arrears and benefit tenants wouldn't or would find hard to repay I think your right with what your saying but I do think it is slightly unfair because most benefit tenants struggle anyway so I think it'd be good if they put something in place for people like us, we can't go out there and bulk buy and whatever else because its just not affordable and many people are left on there arse

For working tenants they've got what 2 full incomes and are able to keep full mortgage/rent where as people on benefits are expected to make do with what we've got basically and live off pittence, but I get what your saying and your are quite right tbf

And also some other tenants in total support of my ways:

Some people are a joke. Can’t be easy been a landlord at the best of times, and especially with all this going on and you get idiots asking asking stupid questions.

Are people actually asking for this and expecting to get it. You do have some brain dead tenants cheeky fuxxers

Aww man I was hoping free rent 😂 joking... I know what mortgage holidays are and they're not free... it's all added on the end. So I knew nothing is going to be different in the rent 👍but glad you're sending things out because papers etc are twisting things and confusing people

I'm not expecting a rent holiday, unless u offering 🤣🤣🤣🤣🤣
No but jokes aside your right. Agree with all that

The genuine one:
Morning Mick as your aware of all that going off in the world and that everything's gone mad. I have been off work which I though was my being paid by holidays but turns out I didn't have enough holiday to cover what I had off so when I get paid I will only get paid half of what I normally get I am so stressed and scared that I havnt got any money. and also been told yesterday my job is not safe and could be laid off in the next few days 7 people from work was laid off yesterday. I just generally don't no what to do where to turn as the next few months will be seriously hard money wise and scared I won't have any money to pay rent or any bills for that matter. As I haven't been laid off yes there is nothing I can claim and my hours have changes also because we are closing early due to work trying to keep cost and labour down

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