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Original poster

Landlords & Coronavirus - what are my rights?!

20 replies

AlwaysAllegra · 31/03/2020 17:17

Hi everyone,
We have a contract with an agency who rent our house out for us. Pretty much our agency is not paying us, even though our contract says they have to pay us 'x' amount on the 22nd of every month for the year. I've spoken to a legal property friend who has had a look at the contract and said they are in breech. We have guaranteed rent, so what are our rights. We've had to cough up this months mortgage for that house as the 3 month break does not come in to play till May as we missed the cut off due to the agency not notifying us that they would not be paying.
I've spoken to the tenants who advised as soon as BJ had his speech that they can pay something but not everything as tenants are 1 income self employed household and claim no benefits.
Can anyone tell me my rights here, I can't go to court right now and would this come under 'natural disaster!?' the agency are keeping all of this months rent and we get f all. Is this right? Please only comment if you work in lettings/legal/property, as I need to know facts rather than what is the 'right thing to do' again we were meant to have guaranteed rent, so I'm confused how we have nothing now. Thanks

OP posts:
Undecided91 · 31/03/2020 17:24

Pure greed

Reginabambina · 31/03/2020 17:28

I don’t understand why the agency is keeping all the rent?

FishOnPillows · 31/03/2020 17:30

I don’t understand. Are the tenants paying their rent or not?

LIZS · 31/03/2020 17:31

Is what the agency have held onto equivalent to their commission? What does your contract state in case of underpayment of rent? Do you have any insurance?

YellowCorvette · 31/03/2020 17:32

If it were me (I'm a landlord) - short term, contact your tenant to arrange payment straight to yourself. End the contract with the agency via writing.

Long term, you may need to take the agency to court to re-coup the rent owed to you.

You can take out 'rent guarantee' insurance with a landlord insurance provider, there are lots of choices for around £100 per year.

For more legal advice (they provide insurance packages too) have a look on The National Landlord Association's website.They're fantastic.

BlackHillsofDakota · 31/03/2020 17:32

Some questions....
Do you have a guaranteed rent insurance policy or the system where they take on the tenancy and sub let to the tenants?

Have the tenants paid the rent?
Why do you think the agency are holding on to the rent?
What have the agency said?

I

Original poster
AlwaysAllegra · 31/03/2020 19:48

Hi All

  1. No we don't have guaranteed rent insurance

  2. tenant has paid 900 of 1500 they normally should pay, just spoke to tenant and they are so lovely and shocked by the agencies behaviour. We get 1300 of that so agency make 200 a month in commission

  3. agency are given us nothing this month

  4. contract is guaranteed rent and states that they take on the sub letting side and have an agreement with the tenant and will always pay us 1300 on the 22nd of the month

  5. we will be getting this insurance, as I never knew it existed

  6. they've just paid agency today, why are they not paying us? I'm absolutely raging rn

Thanks

OP posts:
BlackHillsofDakota · 31/03/2020 19:53

So I presume it's an agency like Northwood or similar. Have you read all if the T's and C's? If there is nothing in there and they guarantee the rent regardless then you should have been paid.
How have the agency explained it? If they have sub let then what or when the actual tenants have paid is immaterial and you should get it on the day they promised.
How have the agency explained themselves?
FYI you can't take out the rent protection insurance at the moment due to corona as all insurers have stopped taking on new customers. Also if your contract is with the agency rather than the tenants then it wouldn't cover you anyway.

Original poster
AlwaysAllegra · 31/03/2020 20:00

Agency said its a natural disaster and to take them to court and we won't get a penny for 3 months but we have done the mortgage break so they don't see the problem... How are they allowed to do this? There are no sub clauses in the contract to say they will not pay for any reason

OP posts:
BlackHillsofDakota · 31/03/2020 20:22

So there must be something in their clause regarding natural disasters if they are that confident telling you to take them to court? Have you read all the small print?
If they have broken the terms of the contract you could disinstruct them and deal with the tenants directly.
I think you need to discuss it with the agent and come to an agreement

Whathewhatnow · 31/03/2020 20:29

Whatever happens now, sack this agency off afterwards. They have no scruples at all.

Legally they may be fine. And probably claiming some lovely government grants. Morally... byeeeee... I think a lot of dodgy companies will see their comeuppance after all this is over.

I'd pay 300 or so for a property lawyer to look over whether you have a claim. Contract law (which thos sounds like) is really complicated and unreasonability can be a grounds for non-enforceability IIRC.

ChazsBrilliantAttitude · 31/03/2020 21:10

Check the clause. I would expect there to be link between the natural disaster and the ability to pay in the clause. I would be surprised if it is carte blanche to withhold all payment and not pass on any payment received. If they are pursuing this tactic then you may, depending on the wording of the contract, be able to invoke frustration and declare the whole contract void and contract directly with your tenants.

Nobody can advise you without seeing the contract. However, I would be surprised if the agency’s payment is guaranteed rather than a pass through from the tenants.

Original poster
AlwaysAllegra · 31/03/2020 21:29

I'm new on here so I can't upload the contract with blacked out bits to protect their shitty identity for 48hrs due to MN rules. Will upload when I can.
There is no mention of not paying for any reasons natural disaster or otherwise.
Agency are back open on Thursday, so will contact them then and let them know I know the tenant has paid them something.

Thank you for all of your advice, I am keen to get rid of them and proceed with the tenants directly.

OP posts:
midwesteaster · 31/03/2020 21:42

I have the option of rent insurance but haven't taken it out as it added significantly to the cost, I'm glad I didn't bother as I got an email last week saying C19 was an exception and insurance was rent suspended for several months!

Original poster
AlwaysAllegra · 31/03/2020 23:09

@midwesteaster thanks for your message, it makes me feel a little better that I didn't take this out (mainly due to not knowing and assuming agencies would keep to agreements on their contracts)

OP posts:
swils · 01/04/2020 22:26

This reply has been deleted

Message withdrawn at poster's request.

swils · 01/04/2020 22:55

I am in a similar position.

I have a guaranteed rental contract so my tenant is the letting agent and they sub let it.

I have paid over the odds in monthly letting fees for many years safe in the knowledge that the rent is guaranteed, even if they don't have tenant. I am in this contract until January 2021.

The sub tenant moved out last month and the letting agent are not honouring the 'guaranteed' income. They have emailed to say that because of the social distancing restrictions in place because of Covid, the property has become 'unlettable'. There is nothing wrong with the actual property.

They then, in the same email, go on to say that they will try their best to find and place a tenant using virtual tours and online communications. So it is lettable???

I spoke to a solicitor this afternoon and she thinks they are in breech of contract.

Original poster
AlwaysAllegra · 02/04/2020 20:20

This is the full contract, apparently we are getting 900 of the amount tomorrow, which is what the tenants have paid. Is my friend right that they are in breach of contract?

@swils sorry to hear about your situation, it really isn't easy at all

Landlords & Coronavirus - what are my rights?!
OP posts:
swils · 03/04/2020 10:18

The solicitor I spoke to said we have up to 6 years to claim money back. He said do nothing for the next few months until similar legal have happened with big businesses and insurance companies.
He said there is no point fighting it this stage.

He said once it clear how judges are ruling, then he’ll advice of what to do next.

Seems like sensible advice if you can manage without the money each month.

Original poster
AlwaysAllegra · 03/04/2020 13:24

Thanks @swils we missed the mortgage break for April, but we have one for May, June and July... As we just can't afford to pay it along with our mortgage.
I just assumed the agencies had insurance for these type of things? Hence why they made us sign a contract guaranteeing the rent. I think for me it bores down to having been respectfully told by the agency as soon as the tenant alerted them to the fact that they couldn't pay, so we didn't have to pay April ourselves and could have done the mortgage break sooner. I can't imagine we are the only two in this situation

OP posts:
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