Tenant can't pay rent
Discussion
I have a tenant who can't pay rent, he was previously working as a taxi driver but that's since come to a halt due to the ongoing pandemic.
He asked for a rent holiday until the pandemic is over and that i explore the mortgage holiday route.
He's been in about 2 years and has always been good, i'm inclined to give a holiday but the tenant told me they get £200 housing benefit, the rent's 1k total. My suggestion was they pay something towards if ideally the £200 but he's hard up.
Any thoughts on how i should progress this? I'm not wanting to turf him out as he's a long term tenant and has a family but still disagree with the idea of a complete holiday, i still have bills to pay and don't want to take a fuller hit and was trying to avoid the mortgage payment holiday to try and clear the balance earlier?
Thoughts appreciated.
He asked for a rent holiday until the pandemic is over and that i explore the mortgage holiday route.
He's been in about 2 years and has always been good, i'm inclined to give a holiday but the tenant told me they get £200 housing benefit, the rent's 1k total. My suggestion was they pay something towards if ideally the £200 but he's hard up.
Any thoughts on how i should progress this? I'm not wanting to turf him out as he's a long term tenant and has a family but still disagree with the idea of a complete holiday, i still have bills to pay and don't want to take a fuller hit and was trying to avoid the mortgage payment holiday to try and clear the balance earlier?
Thoughts appreciated.
I've heard of a scheme where someone had a cleaner who couldn't come and clean. She agreed to carry on paying her, on the basis that in the future she would get paid a little less until the "loan" was covered. Obviously some potential issues but it seemed a reasonable solution to keep the cleaner ticking over without giving money away AND losing the cleaner who could retreat off to work as a delivery driver for ubereats or something.
Maybe your equivalent is you let him off for a bit and once he gets back to work you put his rent up until the "loan" was repaid.
Maybe your equivalent is you let him off for a bit and once he gets back to work you put his rent up until the "loan" was repaid.
Rameez-Q said:
I'm not wanting to turf him out
Are you aware of the info in the link below?https://www.arla.co.uk/news/march-2020/covid-19-co...
Rameez-Q said:
I have a tenant who can't pay rent, he was previously working as a taxi driver but that's since come to a halt due to the ongoing pandemic.
He asked for a rent holiday until the pandemic is over and that i explore the mortgage holiday route.
He's been in about 2 years and has always been good, i'm inclined to give a holiday but the tenant told me they get £200 housing benefit, the rent's 1k total. My suggestion was they pay something towards if ideally the £200 but he's hard up.
Any thoughts on how i should progress this? I'm not wanting to turf him out as he's a long term tenant and has a family but still disagree with the idea of a complete holiday, i still have bills to pay and don't want to take a fuller hit and was trying to avoid the mortgage payment holiday to try and clear the balance earlier?
Thoughts appreciated.
It's a difficult one.Many tenants are struggling, some are not struggling but claiming to be.He asked for a rent holiday until the pandemic is over and that i explore the mortgage holiday route.
He's been in about 2 years and has always been good, i'm inclined to give a holiday but the tenant told me they get £200 housing benefit, the rent's 1k total. My suggestion was they pay something towards if ideally the £200 but he's hard up.
Any thoughts on how i should progress this? I'm not wanting to turf him out as he's a long term tenant and has a family but still disagree with the idea of a complete holiday, i still have bills to pay and don't want to take a fuller hit and was trying to avoid the mortgage payment holiday to try and clear the balance earlier?
Thoughts appreciated.
The reality for landlords giving rent holidays and receiving loan payment holidays themselves is that tenants are racking up unsecured debt, which they may or may not pay, landlords are incurring secured debt that they will have to pay. The government knows this, but first and foremost they are saying what they need to in order to get people to stay at home. Secondly they don't care if landlords lose some money.
It sounds like your tenant cannot pay very much, even were he to pay something. Will that small amount make much difference to you right away? Give the guy a holiday and show some trust in him. If he doesn't do the right thing, you have at least been seen to have done. If you were ever to have to take him to court your fair mindedness will play well.
156651 said:
Rameez-Q said:
... was trying to avoid the mortgage payment holiday to try and clear the balance earlier?
I'm sure you could put back your plan of having your tenant pay your mortgage off for you by a few months in such exceptional circumstances.There seems to be lots of polices in place to protect the tenants due to Covid-19, but nothing in place to protect the landlords. It's all very well saying landlords are OK as they are getting a mortgage holiday, but all this means is the missing payments are added to the total balance outstanding.
What about landlords who don't have a mortgage and rely on the rent as their pension to live each month? What are they supposed to do, just suck it up? What if your employer said "Sorry, funds are a bit short this month due to Covid-19 so I am just going to pay you £1000 a month less from now on", how would you react to that?
Nothing is for free in life, why do tenants think they can just not pay their rent and the landlord will just have to accept it? I am sure certain tenants are seeing Covid-19 as a great way of not having to pay rent, how do you know the tenant is not trying it on and how long do you let them not pay you any rent?
Is this going to set a precedent where nobody thinks they have to pay rent ever again?
Tenant should claim UC plus Discretionary Housing Payment if there’s a shortfall. If there’s STILL a shortfall then either negotiate or else just live with it. It’ll only be for a couple of months.
Meanwhile in better news, my areas LHA rates have just been put up by TWENTY percent!!! For 20/21. Check yours out!! (Didn’t someone say landlords were being disincentivised)?
Meanwhile in better news, my areas LHA rates have just been put up by TWENTY percent!!! For 20/21. Check yours out!! (Didn’t someone say landlords were being disincentivised)?
Joey Deacon said:
I really don't understand why there is such hate for landlords, no landlord forces their tenant to rent from them. If there were no private landlords where do you think all of the people that rent properties would live?
Landlords aren't adding to the property supply - plenty of people who are renting would be able to buy if prices were lower because there were no private landlords - houses would not sit empty. 156651 said:
Joey Deacon said:
I really don't understand why there is such hate for landlords, no landlord forces their tenant to rent from them. If there were no private landlords where do you think all of the people that rent properties would live?
Landlords aren't adding to the property supply - plenty of people who are renting would be able to buy if prices were lower because there were no private landlords - houses would not sit empty. If there were no private landlords then these house would have been bought up by companies to rent out. I think the idea that prices would drop to the point where everybody could afford to buy a house is incredibly naïve.
Difficult one. I rent a property and would hate this situation on me. I also agree with the general hatrid towards landlords.
My friend is a cab driver and is still working. Ask why he isnt working ? With careful work practises he can still go out and work. i know of a cab driver that used a clear shower curtain around his seat :-) He only accept card payments too.
My friend is a cab driver and is still working. Ask why he isnt working ? With careful work practises he can still go out and work. i know of a cab driver that used a clear shower curtain around his seat :-) He only accept card payments too.
I had to give a 30% discount (no loan) for 3 months to my tenant as he owns a restaurant.
My reasons???
He could legitamately live there 3 months and pay no rent. Then I have to submit forms to get him to court. Add another 2 months. Then there is the eventual backlog of court cases add another 2 months and then the judge may well say stay another 6 months because they have no where else to go. All in all a year rent possibile lost and court costs vs a 3 months payment discount.
The current environment is stacked against landlords. Tread carefully.
My reasons???
He could legitamately live there 3 months and pay no rent. Then I have to submit forms to get him to court. Add another 2 months. Then there is the eventual backlog of court cases add another 2 months and then the judge may well say stay another 6 months because they have no where else to go. All in all a year rent possibile lost and court costs vs a 3 months payment discount.
The current environment is stacked against landlords. Tread carefully.
Gassing Station | Finance | Top of Page | What's New | My Stuff