No Rent For Buy To Let Landlords

On a note of caution against terminating contracts early, we must consider the issues of Council Tax liability and buildings insurance.
Many HMO’s which are let to students are exempt from Council Tax if all the residents are in ful time education. Once the students vacate, some councils seem to think that the landlord is liable, irrespective of whether the students are contracted to live there.
In respect of property insurance, it is usually a lot more expensive to insure an unoccupied property after an initial period of typically one month.
Please don’t shoot the messenger. . . . . .

Yes potentially a big issue.
Some councils, for example Basingstoke are changing the two free months to April & May instead of Feb & March so worth looking into.

Yes potentially a big issue.
Some councils, for example Basingstoke are changing the two free months to April & May instead of Feb & March so worth looking into.

Reply to the comment left by Jessie Jones at 03/04/2020 – 10:30
You are so right Jessie, I have already mentioned that to student as that is going to be our additional cost. BTW we already lowered the rent 20% for them, but they want more.

Reply to the comment left by Jessie Jones at 03/04/2020 – 10:30….spot on. Also if the tenancy is ended it is likely that contracts for electricity gas/water will be terminated also and therefore the Landlords will become liable for any daily charge payable even if no gas/electricity/water is consumed.I am fortunate that my insurer allows up to 60 days unoccupied and allows July, august, September to be unoccupied.

Reply to the comment left by Gromit at 03/04/2020 – 10:57

Thanks for that. We have our insurance via P118. I did not have time to check the T&C though. We just cannot let the students go and stop paying rent. They have their stuff in the house. How are they supposed to do the final cleaning? No sane provider will come to do over and window cleaning! We maintain the property, installed timers, pass it every other day to check if it is OK, attend to the bins. The Uni is just crazy to compare themselves and shareholder LLs with very small ones like us.

Reply to the comment left by Matarredonda at 03/04/2020 – 10:35
Each council determines their own areas for applying ‘discretion’.
In Nottingham there are zero free months. In the Erewash area of Derbyshire there are 3, but they even wanted council tax for a house that became uninhabitable because of extensive fire damage.

Reply to the comment left by Annie Landlord at 03/04/2020 – 09:13
I think there’s something worth mentioning about renting to tenants or students.

Students who leave accommodation early don’t necessarily stop receiving their grant. People who have been employed and are furloughed may have 80% of their salary. Even self-employed people may get help, although they may have to wait until June.

When the country goes into lock-down and you can’t go anywhere most or your costs go down. You can’t travel, socialize, go to the pub. It’s also quite hard to over-eat. So your expenses go down. So most people should easily be able to afford the roof over their heads (there will be tenants with cash flow problems if UC or support for self-employed people takes a few months to come through).

I think one of the consequences of lock-down will that there will be a massive increase in home consumption of alcohol. But that’s just a choice, it makes much more sense to only drink at weekends and try and stay in a routine. With the support that’s out there most people *should* still be able to afford their rent.

Student finance /Student England etc etc have already said that students will be getting their maintenance loans and grants so they have no excuse not to pay for their rent for the summer term. The money goes direct to the students not yo the Universities.
For 20/21 academic year some Universities in a 4 term year start July, so if the students have already signed tenancy agreements they will be getting their maintenance grants / loans too. Those starting in October may be doing lectures via Internet and not be on campus so not sure what happens then. Might be a good idea to contact Student finance and see what they say. Not sure about foreign students though

Reply to the comment left by JJ at 03/04/2020 – 11:49

Consumption of utilities is likely to be higher with greater usage of heating lighting, and water whilst at home rather than out at work.
This will affect Landlords who’s rent includes bills.
Also there will also be a greater amount of wear & tear as tenants will be using things more. So there will be higher maintenance/repair costs down the line.