Temporary solution to rent payment issues following Covid-19 advice

by Property 118

14:01 PM, 18th March 2020
About 2 months ago

Temporary solution to rent payment issues following Covid-19 advice

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Temporary solution to rent payment issues following Covid-19 advice

Government advice to restrict the spread of Coronavirus is, and will obviously have, a detrimental knock on effect to levels of employment, wages and self employed income.

Jeremy Corbyn and the Labour party are pushing hard for legislation such that non-payment of rent due to Coronavirus would not count as legal grounds for eviction. Boris Johnson has very carefully worded confirmation in PMQs today that measures to protect tenants will be brought forward.

Chris Sheldon of LettingSupermarket.com, has considered the following temporary solution. which in the short term will help tenants pay rent.

Chris has setup an LettingSupermarket.com Paypal account and will advise tenants that if they setup a Paypal credit facility they receive 4 months interest free payments.

If tenants cannot afford to pay their rent then they can request LettingSupermarket.com invoice them from their paypal account at which point they can pay through Paypal credit and then pay it back as and when they can.

This of course depends on if the tenant can get credit, but a large majority of people will be able to.

Chris Sheldon said: “In light of a lack of solutions from the government at present this is the best and most expedient option I could come up with so far.”

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Comments

Luke P

14:29 PM, 18th March 2020
About 2 months ago

Would this not fall foul of some such legislation re requiring the tenant to incur (possibly) unnecessary/additional fees?

Neil Patterson

15:31 PM, 18th March 2020
About 2 months ago

I'm not sure how it would be any different to using a credit card to pay the rent?

Luke P

15:39 PM, 18th March 2020
About 2 months ago

Reply to the comment left by Neil Patterson at 18/03/2020 - 15:31
I think the main difference is PayPal is a lot more accessible and familiar to most than perhaps a credit card is and I think has a very high approval rating.

Chris Sheldon

16:09 PM, 18th March 2020
About 2 months ago

Reply to the comment left by Luke P at 18/03/2020 - 15:39
I think the primary point is that we aren't insisting that payments are made this way, we are making tenants aware that if they are struggling we are able to facilitate payments which enable them to maintain the security of keeping up to date with rent when finances might not be accessible due to the current climate.

Freda Blogs

16:28 PM, 18th March 2020
About 2 months ago

Reply to the comment left by Chris Sheldon at 18/03/2020 - 16:09
Do the Landlords have to be Letting Supermarket clients or can anyone refer their tenants to you to use this facility?

What happens if the CV problem goes beyond 3-4 months? Will the credit facility roll on?

Rob Crawford

16:29 PM, 18th March 2020
About 2 months ago

It would be the tenants decision as to whether they set up an account with Paypal or whether they obtain funds from elsewhere or pay out of savings. Paypal offers up to four months interest free credit and it is easy to set up. Can be done on line. There would not be a fee, it's just mechanism to pay rent at a later date. If the tenant does not payoff the credit within the four months then interest will be applied, but that is due to an arrangement made between the tenant and PayPal and so I am pretty sure it will not conflict with the TFA. However, I think tenants, Acorn, Shelter etc and JC will be seeking a "a period of no rent" absorbed by landlords. Hopefully, Boris has a broader perspective, an appreciation of landlord issues that will arise if JC's bill is passed. Does Boris have an alternative plan?

Rob Crawford

16:36 PM, 18th March 2020
About 2 months ago

Reply to the comment left by Rob Crawford at 18/03/2020 - 16:29correction....if credit is not settled, Paypal charge a flat £12 fee rather than a % interest.

Chris Sheldon

16:44 PM, 18th March 2020
About 2 months ago

Reply to the comment left by Freda Blogs at 18/03/2020 - 16:28
For each new payment interest is set a 0% for 4 months so subject to credit limit it rolls over.

Unfortunately this is only available to Lettingsupermarket.com clients, however if you wish to contact us we could setup a very reasonably priced rent collection package.

Mark Alexander

18:44 PM, 18th March 2020
About 2 months ago

Reply to the comment left by Chris Sheldon at 18/03/2020 - 16:44
Jenna in your Norwich franchise has already recommended this to one of my tenants who is in arrears for other reasons. Let’s see whether they go for it

Ray Davison

9:11 AM, 19th March 2020
About 2 months ago

If the Tenant pays by Paypal, then Paypal charge a fee to the recipient. Who absorbs this cost, Lettings Supermarket or the Landlord. Depending upon the rate of fees charged by Paypal which can vary, this might be around £20 on a £650 rent payment.

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