Landlord advice

[sillyoldelfbacktohimself]

I'm what you might call an accidental landlord and have a small property with has had a lovely tenant in for the past few years.

She works in hospitality and has rung today to ask for my address for benefit forms which I'm assuming means she's been laid off.

My question is, should I reduce her monthly payments for the next 3 months by the amount that's held in the deposit scheme?

I know it's risky but I'd like to do something to help, if I lost that amount I could afford to take the hit... just.

Any advice welcome, am I being stupid?

Were I in your position, (and I'm not) I'd call her back and ask her what would help her over the next three months.

I think in such situations, it is important that priority outgoings are ring fenced where possible.

If she is claiming support, then an understanding of how long that takes for you would help and for her.

My daughter's landlord has offered a three month payment holiday. She has said, thank you for the offer but she would rather make payments, as she is still in work and is in receipt of all support.

For my DD, as a lone parent with children, shes very appreciative of the offer and were she to lose her work, she would let her LL know. Its knowing the understanding is there.

Going off my DD's LL, that's what I would suggest.

Are you suggesting that you would then keep the full deposit on her moving out?

Do you have a mortgage on it? Contact your lender and ask them if they can give you the mortgage holiday that has been agreed.

Then contact her and ask for whatever information they ask for. Fill ou tthe forms fo rher and talk to her about hwat your situations is and what you are trying to do.

Remember you cannot evict her for non payment of rent, so you will have to work something out.

Are you a member of RLA etc? They have some good info and advice...

Good luck.

I wish I had proof read that, sorry!

Yes @MsSquiz that was my initial thought as for her to pay me back in 3 months time say would probably be difficult if she was also back to paying full rent.

I think the benefits system will support people who have been working legally and paying tax and NI. It sounds as if this is the case. So she will probably get money eventually.

There is nothing a landlord can do about non/late payment even in normal circumstances until a tenant is two months in arrears. In your position I would reassure her that you are sympathetic and will be flexible in view of the exceptional circumstances. That would probably involve extending the acceptable period of arrears for the duration of the corona crisis.

But I would not offer a unilateral rent reduction at this stage. Wait to see what support government offers to renters. It will be substantial.

@CuriousaboutSamphire that's my next call, my mortgage provider is on the list.

Will the 3 months be added on at the end of the agreement though? So effectively I'll be out of pocket anyway?

@sillyoldelfbacktohimself if my landlord did this there is no way I'd be able to afford to pay it back in 3 months time along with full rent.

Do the tenants need to prove they have lost all 3 months of income?

Do NOT use the deposit, the deposit should be in DPS and if it's not, she might be lovely, but could easily sue you. This is just a terrible idea.

I think call her and ask how you can help - maybe a reduction in rent for three months and then it's paid back over the next 6 months. Ensure it's in writing. We all think people are good but often people can do bad things, so always protect yourself whilst trying to help!

@sillyoldelfbacktohimself deposits held in schemes are only used to repay rent as a last resort, once all other charges have been deducted.

What if she was to move out and the carpets need to be replaced? If she was to blame then that amount would be deducted from the deposit. You couldn't claim more than is held

I think wait until Universal credit comes through then reduce rent that level for the duration needed, taking a mortgage holiday if you can and then resume full rent in the future when she is able but write off the difference for duration of UC and do not make it a debt,

Thank you for your quick replies!

My plan of action is to see what my mortgage provider says then ring her back and tell her to keep me posted about the benefit application and ask if there's anything I can do to help with the forms.

Not offer to drop the rent at this stage but tell her not to worry if her claim takes a while to sort out.

The deposit is in a DPS and like PP mentioned it's not there for situations like this.

It must just be so stressful to go from working full time one week to nothing the next.

Will the 3 months be added on at the end of the agreement though? So effectively I'll be out of pocket anyway? Yes. The holiday is not a forgiveness of the payments, it gets added onto your term. There is no guidance yet as to how you claim it back from the tenant. A few of my cleints are reducing rent to the miniumum they can afford and asking tenants to stay in contact. So some are getting the mortgage holiday and then asking the tenant to pay a % of the rent. They'll work out what to do next at the end of the 3 months and then what is owed and arrange a repayment plan whenever appropriate!

Remember you don't know what else your lender will arrange later, or what your tenants job position will be in a few months.

And, as others have said DO NOTHING AROUND THE DEPOSIT! That isn't your money until any is released to you if there are damages identified at the end of the tenancy. Earmarking ot for renat arrears would leave you out of pocket. So arrange soemthing else with her now and stay in touch with her. be nice, hope she is too!

Try Landlordzone, they have some threads starting on it, good and bad! You aren't alone. They are a curmudgeonly lot, but usually full of good advice!

forums.landlordzone.co.uk/forum/residential-letting-questions

I'd try to take the hit when we are out the other side look at what you can do . Good tenet is worth more than a few months reduced rent.
Be honest with her tell here you still have a mortgage to pay.

benefits system will support people who have been working legally and paying tax and NI.

Not true for vast majority of nonEU immigrants. Their visas that permit them to work also prohibit them from claiming any benefits.