I'm a landlord and my tenants want to freeze their rent

[Pooshweens]

I let out a 2 bed flat privately, and the tenants (who I've had for approx 3 years, and have been fine), are asking to freeze their rent

They say one is currently employed, but the other is not employed and will struggle to get a new contract with everything going on

I have a large mortgage on the property - I can of course try to freeze this, but will still have to pay it ultimately for months they wouldn't be paying rent, and my monthly repayments would subsequently increase

I don't think I can serve them notice anyway, not that I'd want to

I'm wondering how to best handle this and what rights I have (if any!) as a landlord. I'd like to see proof of unemployment or lack of wages. Not sure what to do!

Are they asking you to waive the rent or defer it?

They've asked for rent "relief" so are perhaps asking to pay no rent, or a reduced rate

I'd ask them if they could manage half rent.

I’d definitely find out what they can afford to pay and work with them.

If you’re able to defer your mortgage payments for 3 months, I would offer them the same and spread the rent out over the remainder of the lease.

Speak to your mortgage company and ask what relief they will offer you then pass that on to your tenant.

Also if your tenant is unemployed they will be entitled to universal credit which may include a housing element. Find out what the LHA rate is for a 2 bed property.

I would definitely ask them for the paperwork that shows their financial situation, and then make your decision after that.

How long has one of them been unemployed because depending on circumstances there is the 80% wages psyment.

Also if it's a while and they have coped paying till now - why have they asked for relief?

I assume they are very sensibly preparing for the worst.

Ask to defer with your lender and pass that onto them.

Unfortunately you won't be able to evict them right now I believe

Unfortunately you won't be able to evict them right now I believe

Why is that unfortunate? OP surely doesn’t actually want to be left with an empty property earning zero income as well as eviction costs during a period of severe economic instability?

Could you offer less rent to be paid on the condition that anything not paid is added when this is over?
For example if they currently pay £650, they pay £450 until it’s over and then the rent increases to £750 until they pay back what they owe? I’m not a landlord.

I agree with @juan, why the unfortunately @slippery? The op already said they don't want to evict them. Why would you want to evict tennants who have paid their rent in time for 3 years during a horrible unstable period like this.

Be careful. What happens if you offer less now and they refuse to pay more in the future. If you ask for a mortgage holiday, you will only be paying more interest in the future, and you lose out. Will they be paying this interest?

Contact your insurer for advice

Can they get help with rent if they are unemployed?
I know this is a set amount so if the rent is over that then they would pay to pay the rest.
If they are good tenants I would explain to them you have a mortgage to pay and you can't afford to pay it without their rent. There is a mortgage holiday you could see if you can use and then let them know they can reduce or freeze the payments because of this.

Also if your tenant is unemployed they -will- may be entitled to universal credit which may include a housing element.

Not everyone legally resident is eligible for UC. All nonEU immigrants on work visas for example.

even if you could evict them - then the property would be empty and you’d not be getting any money anyway! Prob not a great time for finding a new tenant either

I think you can offer them a lower rate for a bit is the only option really!

Buying a second property to rent out is an investment - and it comes with risks like any other other investment unfortunately- won’t always be profitable

I'd like to see proof of unemployment or lack of wages.

Wow.

@PracticallyPeeps yes why would the OP who is going into siginifuxant financial hardship herself not want this?

@underneaththeash yes I agree, it is normal debt practice to see payslips, savings, and other income plus an income and expenditure form. They are legally contracted to pay their rent. If they are asking to renegotiate even for a limited period you absolutely should see the details to see what is realistically affordable.

It is positive that they have talked about this with you as they could have just stopped paying. How many months slush fund do you have? Why is the mortgage so high?

Cover your backside and don’t commit to anything until you have full information.

1. Ask them to put their request in writing with confirmation (P45 or similar) and tell them you have to speak to the mortgage company and will get back to them ASAP. Their request should be detailed - ie are they looking for a rent free period, lower rent for a limited period (if so how much and for how long), etc

1. Contact the mortgage company. Can you get a break in your mortgage? If so, how much and how long? What is the effect of this in the short term and long term (interest, longer term etc)? Is such a thing even permitted by your mortgage company/landlords’ insurance etc.

1. Make an informed decision and notify tenants ASAP. A) is it possible? B) is it financially sensible or otherwise acceptable to you?

You may find it is not possible which basically takes the decision out of your hands. And you may find it is much easier and cheaper to accommodate them than lose good tenants.

Unfortunately you won't be able to evict them right now I believe

Gosh. Nice to see compassion in a national state of crisis.

Eviction have been illegal during this pandemic.