No Rent For Buy To Let Landlords

by BakerStreetPropertyMeet

18:54 PM, 18th March 2020
About 2 months ago

No Rent For Buy To Let Landlords

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No Rent For Buy To Let Landlords

Its a distressing time for Buy To Let (BTL) Landlords with tenants affected by Coronavirus (COVID-19). Now if tenants don’t pay their rent, landlords won’t be able to evict them for non rent payment using a Section 21 notice.

This poses a problem if tenants start to demand rent payment holidays of their landlords. In this video below Ranjan addresses the problem faced by residential buy to let landlords and the array of other costs and overheads they now face.



Comments

Martin Knowles

21:25 PM, 18th March 2020
About 2 months ago

If you rely on the difference between your rental income and your mortgage payment for cash flow/salary/wage/income you may well have a big problem.
You maybe able to obtain a 3 month holiday from your mortgage provider but some tenants may now decide not to pay any rent for 3 months (even if they are able to) and the landlord will not be able to do anything about it. Consequently you will have no income if this is your only source of income.
This is my take on this at the moment.
Am I right or have I missed something?

Mark Alexander

22:13 PM, 18th March 2020
About 2 months ago

Reply to the comment left by Martin Knowles at 18/03/2020 - 21:25
My understanding is that it only applies if the tenants can prove they have been unable to earn a living as a direct result of Covid-19

Martin Knowles

7:29 AM, 19th March 2020
About 2 months ago

Reply to the comment left by Mark Alexander at 18/03/2020 - 22:13
How easy or difficult that will prove to be we don’t currently know.
Landlords should and I’m sure they will, help their tenants as much as they can who are genuinely affected by Covid-19.

Lesley Lester

8:23 AM, 19th March 2020
About 2 months ago

It seems that Tenants have several left-wing organisations, i.e. Shelter, to voice and support them, who represents the Landlords voice in the Goverment?

Eugene Tooms

9:18 AM, 19th March 2020
About 2 months ago

As A landlord i'm getting out ahead of this and offering 30-50% reductions in rent to tenants, I feel it's better to getsome rent than risk a void. I can't imagine tenants been keen on vieweings at all. .
I think it's time I did my bit and showed tenants that landlords are part of solution. I'll lose money, but not tenants.
maybe I can help them in a real way, more than shelter.

Eugene Tooms

9:19 AM, 19th March 2020
About 2 months ago

Reply to the comment left by Lesley Lester at 19/03/2020 - 08:23
Alot of our mps are landlords and feel they have done us proud over the years.

Rob Crawford

9:21 AM, 19th March 2020
About 2 months ago

It's a rent postponement for Covid-19 tenants that Boris has introduced. Tenants will still need to pay at a later date. If tenants can afford it, they would still be better off paying on time. The problem landlords will have is with tenants who set out to abuse the system.

Sue J

9:33 AM, 19th March 2020
About 2 months ago

For HMO properties there is even more financial strain as all bills are covered within the rents. If help is extended to buy to let mortgages (and my mortgage company Kent Reliance doesn't seem to be aware of any help as of yesterday) the substantial utility/service bills for the HMO's are likely to cause defaults. If services such as lighting heating or wifi's etc go off where do we stand. I am not a limited company, my properties are my only income and my bank considers my income as a 'business' although the government or tax man does not. I therefore cannot get any extension on my overdraft as my bank's 'rules' allows no 'special exceptions' for covid 19!! I am now facing a situation of tenants racking up higher bills as they stay home and no income means no money to cover bills. I have long felt that HMO's should have always been considered businesses with separate tenancy agreements set aside due to the differences in management. If that had been the case any 'businesses' effected would have been covered. If tenants have further protections on evictions then the pain is higher. If I can't cover everything which I won't I will have to default and the outcome to the tenants will be evictions by the mortgage company under the only remaining facility which ironically protects the financial bodies who we all bailed out when 'they' had their crisis!!

Luke P

9:41 AM, 19th March 2020
About 2 months ago

It is INCREDIBLY unfair that landlords have to shoulder a heavier burden than almost anyone else. Three months rent deferral -let's say £500pcm...so £1,500 arrears- would, realistically (around these parts) be repayable at, in addition to their normal £500 monthly rent, £100/mo. That's FIFTEEN MONTHS...beyond the three month deferral!
Aside from what's 'realistic', this new pre-action protocol will also be focussing on what's 'reasonable'. LLs are expected to have tea & biscuits with their tenants and figure out a way that suits them (effectively), which will be more like £25-50 extra per month. Worse than that, this pre-action protocol will definitely be here to stay beyond the Covid-19 problem!

Absolutely no reason the Govt. couldn't, through UC (including those that aren't normally claimants), pay everybody's rent and claw it back later!!

I'm incensed!

We just rent the four walls and the roof. You wouldn't expect a restaurant owner to 'work with the diners' after they've eaten to come up with a payment plan on settling the bill over a an 18-month period!!!!

Monty Bodkin

9:42 AM, 19th March 2020
About 2 months ago

Reply to the comment left by Sue J at 19/03/2020 - 09:33
evictions by the mortgage company under the only remaining facility

They would still need a possession order (ground 2). There is no mention of any exemption for mortgage companies.

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