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Original poster

Landlords, have you got a plan if the tenant can’t make their rent.

49 replies

Dowser · 19/03/2020 23:26

My tenant is in a very vulnerable position in a store in the shopping centre.
If we go into lockdown for any length of time, then they might struggle . Her partner does work , hopefully at something that is more protected.

Wondered what steps you are going to take?

OP posts:
ramblingmum · 20/03/2020 06:50

We are not sure of our tenants work position yet, but if they can't pay we will just have to manage. We are probably in a better position than so in that we don't have a mortgage on the rented property, although we do have a mortgage on our own home, and our jobs are safe(NHS). As a landlord you need to be able to cope with a gap in rent. No different than tenants giving notice and having to manage until you find new tenants.

Obviously at the moment letting your tenant stay is the right thing and the law, but it also makes sense to keep a good tenant.

redmimi · 20/03/2020 07:02

Hopefully this will help in the short term with the mortgage payment break available.

www.gov.uk/government/news/complete-ban-on-evictions-and-additional-protection-for-renters

BlameItOnTheBogey · 20/03/2020 07:11

I assume if our tenants can't pay, our landlord insurance would kick in and cover the rent.

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underneaththeash · 20/03/2020 09:54

We've contacted all ours - a couple are Chinese and are attempting to get home, but will cover the remaining rent on the property until the end of their contract, 1 said that he may come back in the summer if it's sorted.
Another couple have key jobs, so will be fine.
The other two have also said that they're okay for the moment too - but they are the ones we'll keep checking on to make sure.

We'd only be in trouble if they all didn't pay.

Singerleon · 20/03/2020 10:09

I’m just going to let tenants have a rent break if they can’t pay. Can’t magic money up from nowhere if they have no/reduced income. I have savings that will cover my lost income from the rent. I’m also trying to reduce my own outgoings and live more frugally while this lasts.

I might be a landlord but I’m a mother and a human so will be doing what I can to reduce stress to my tenants about not being able to pay.

thecatneuterer · 20/03/2020 11:54

There is bugger all I can do. Evictions are suspended anyway and, even if they weren't, and I were heartless enough to want to evict, there wouldn't be any point as it will be impossible to find new tenants. I fully expect to lose between half and three quarters of my income due to empty rooms/non paying tenants. I'll ride it out and when the dust settles I will think about how to tackle it then, taking each individual tenant's case into account.

Rainb0w · 20/03/2020 12:06

I own my rented property and luckily enough mortgage on my lived in property is fairly low so I will not struggle if the tenants was unable to pay they are friends of ours so so long as I don't see them taking the pee they will not have to worry.

TreestumpsAndTrampolines · 20/03/2020 12:19

We don't have a mortgage on ours any more, so we have all the flexibility.

Our agents offered the rental guarantee, but I checked the T&Cs and after 30 days in arrears they require that you hand the matter over to their lawyers, and I just didn't feel comfortable with letting the insurance company make all the decisions there, so I declined.

drippingwet · 20/03/2020 12:56

I just want to say you all sound like wonderful landlords. Your tenants are very lucky

Lifesavesocialdistance · 20/03/2020 13:03

My long term aim is to keep my tenant (shop) and there is no mortgage on the property.
So after this months rent I have said, stop the dd and play it by ear.

Tbh I'm not expecting much in the next few months months at all if anything. They have their own families to support and bills to pay. Luckily touch wood I'm not relying on the income. So far.

I'm viewing it longer turn and pragmatically. 3/4 months rent in terms of the decades won't hurt

everythingcrossed · 20/03/2020 13:08

I'll discuss and see if we can work out some way of giving them a rent holiday and they can pay back what they can once they are back on their feet. It will cause me financial problems but there is nothing I or they can do so we might as well be magnanimous about it.

Original poster
Dowser · 20/03/2020 13:30

I’ve just got back from holiday In Wednesday night so haven’t thought about till now
I have no mortgage on the property or the one we live in, so it’s not going to cause too much of a strain.

No, I wouldn’t kick them out either, I’m not heartless and they are good tenants
I’ll contact them some time today or next week to discuss it with them

Thanks everyone for the input. I never thought of using the landlord insurance.

OP posts:
Original poster
Dowser · 20/03/2020 13:31

I do feel for you that have a mortgage though, hopefully the insurance and mortgage company will be lenient over this upheaval in our society.

OP posts:
mencken · 20/03/2020 13:58

rent guarantee insurance although I suspect there will be an escape clause! Like any sensible landlord, the rent is not my only income.

anyone who has a brain and doesn't believe the Shelter/guardian propaganda knows that even in normal times, eviction for non-payment is very difficult and takes months. all evictions are now stopped. If tenants don't pay that's just how it is.

I do feel for anyone trying to get rid of a drug dealer though, with evictions stopped they will be laughing their heads off. Remember that if you take drugs, you support all the crime involved (not just lack of rent - violence, cuckooing and knife crime) and you are scum too.

BorneFeet · 20/03/2020 14:03

One landlord I know is sailing very close to the wind and will be in trouble if just one of her tenants doesn't pay.

Sadly I think the banks have let her borrow so much and she didn't even contemplate that someone wouldn't pay. She moans everytime she has to spend any money on it on things that are just part of being a landlord

midwestspring · 20/03/2020 14:10

It is our family home we rent out. We can cover the mortgage ourselves if we had to.
A landlord should have emergency plans for non payment of rent factored into their structure.

alphasox · 20/03/2020 14:15

Like others we are sympathetic to our tenants, a family with young kids and would like to help them. We have built up a little bit of savings that would cover the mortgage for 4-5 months if needed but we will also look at our landlords insurance, a mortgage break if that’s allowed on buy to let’s and fingers crossed the government makes a plan soon!

We have emailed our tenants telling them to let us know what’s happening with them and inform us as soon as they think they might have difficulties with the rent so we can work things out. We definitely won’t chuck them out, they’re brilliant tenants.

Movinghouseatlast · 20/03/2020 14:17

The income from our buy to let is our only income now.

We have insurance to cover non payment of rent but I'm pretty sure there will be some clause or another that means we wont get paid.

We would have to use our savings. But those savings also need to cover the mortgage on the house we live in.

There is no prospect of either of us having an income for 6 months realistically- we are both self employed.

Worst case scenario would be to give the keys back. But the house is our only pension so...

Costacoffeeplease · 20/03/2020 14:18

We have 3 rentals, all mortgage free and our house is also mortgage free so it won’t matter if any of our tenants has problems paying the rent

SecretWitch · 20/03/2020 14:23

We decided we will not require rent until they are able to return to work.

NChangeForNoReason · 20/03/2020 14:30

My long term aim is to keep my tenant so will offer them discounted rent if required. I would like them to pay the mortgage as minimum but as it is only 25% of the rent, if they can't I will manage.

BorneFeet · 20/03/2020 14:30

A landlord should have emergency plans for non payment of rent factored into their structure.

I agree, many don't and think it should just be a money printing machine

thecatneuterer · 20/03/2020 14:41

A landlord should have emergency plans for non payment of rent factored into their structure.

True - but for six months? A year? 18 months? That's a huge amount to have factored in. (Although six months without rent is certainly foreseeable as that is normally how long it takes to evict non payers). The other thing is, and LL with multiple properties will have probably banked on only having difficulties with getting the rent in for one or two of them, which could then be 'carried' by the rent from the others. In this case it's quite possible that all or the majority will stop paying. I know few people will be sympathetic but you can't blame the LLs for not having contingency plans for that!

GeraltOfRivia · 20/03/2020 14:46

Our tenant is a single man working in the care sector. As things stand he is still working and earning and we are still bringing in some income. If that stops being the situation for him then we'll ask for the mortgage deferral first then we'll dip into savings so we can all stay afloat. If it goes on longer than 6 months with no rent we're al screwed.

Her0utdoors · 20/03/2020 14:47

We can defer the mortgages, they can defer their rent. Both will have to be payed back in due course. No one is "paying off these mortgages" they are interest only.
Luckily 19-20 was a good year in as much as we'd invested alot in maintaining the properties in the last couple if years so there is some surplus now which will give us and the tenants some breathing room.

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