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Original poster

Tenant asking for covid rent reduction, WWYD

110 replies

psychedelephant · 04/04/2020 18:34

My tenants have asked if I could reduce the rent due to cv and I've said I'm happy to work something out. Wondering what other landlords are doing.
I suggested they do a financial statement, look at the benefits calculator and work out what they can afford but they keep bouncing it back to me.

OP posts:
HollowTalk · 04/04/2020 18:36

There was another thread about this the other day - you might want to search for it.

I would want to know their financial position. What are their jobs? Will they still get paid?

HollowTalk · 04/04/2020 18:36

They need to pull their weight and explain things properly. They wouldn't go into Tesco and expect free food because of Covid.

Original poster
psychedelephant · 04/04/2020 18:42

Hollow I did do a search but didn't find anything, will scroll back and see if I can find it.
Yeah, that was my thinking, just make a case for what you want and ask, no point asking me to make arbitrary guesses.

OP posts:
Hotpinkangel19 · 04/04/2020 18:42

Surely you'll need proof? Not everyone is financially affected by COVID, they could just be trying it on.

LoveFameTragedy · 04/04/2020 18:45

I’ve halved our tenants rent for the summer at least. It only seemed fair since she is unable even to be in the country at the moment. Our other income is ok for now (just a bit down) so just about managing it!

ChefsFloozie · 04/04/2020 18:45

My tenant works in hospitality and was made redundant. He is actively looking for care work though. Went for 50% reduction as recommended by the managing agent. Given that I can get a mortgage holiday I think it’s unreasonable to quibble at the mo

Etcni · 04/04/2020 18:48

yes @HollowTalk but the tenants may very well go into Tesco and reduce the amount they buy or change to cheaper options, or indeed go to a food bank or soup kitchen where the food is actually free - food is hardly a fair comparison to rent!

Cohle · 04/04/2020 18:49

Are you able to get a mortgage holiday?

MsChatterbox · 04/04/2020 19:27

My landlord offered £197 reduction as this is the equivalent to the mortgage holiday. But he said it would be in arrears.

Original poster
psychedelephant · 04/04/2020 19:57

Thanks all, the replies are helpful.

To pinpoint the problem, the tenant is refusing to suggest what they want to do or tell me what they can afford; they're just alluding to their reduced salary and saying they can't claim benefits. I'm wondering if they have misunderstood some advice (they claim to have spoken to Shelter) and fear getting it wrong?

We've decided not to ask for a mortgage holiday for now. Dh has been made redundant but for the moment we can manage.

I'm open to almost any proposal but they're not willing to ask for anything beyond reduced rent generally.

OP posts:
Windyatthebeach · 04/04/2020 20:00

Will they be able to claim the 80 %? Maybe as a good will gesture reduce by 20 % for the 3 months the help is being paid?
Easier than taking them to court for zero payment and having to evict /find new tenants..

Original poster
psychedelephant · 04/04/2020 20:00

Those of you reducing rent, are you taking a loss or will it be payable in arrears?

OP posts:
ChicChicChicChiclana · 04/04/2020 20:02

There are millions of people whose salaries haven't been affected at all by the pandemic. They need to spell it out to you, keep bouncing it back to them.

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

Windy Idk, they won't tell me.

OP posts:
Stripyhoglets1 · 04/04/2020 20:05

If they won't tell you. Say you will reduce by 20% and if they cant pay the rest then they ca

TheEndIsBillNighy · 04/04/2020 20:05

I went straight to half rent for one of our tenants; they are good tenants and I would rather they were able to stay in the longer term than risk losing them. They have a young child too and I did not want them to worry about food & utility bills any more than necessary. I will not put the missed rent in arrears...I’m a bit of a soft touch, but even my husband is in agreement with me on this. I feel it’s the least we can do when everyone is struggling.

SuperSange · 04/04/2020 20:05

Well just say to them' if you don't tell me, then I can't help you?' Just bat it back to them. They're asking the impossible. Or possibly trying their luck.

Stripyhoglets1 · 04/04/2020 20:06

They can pay when they get money in June but need to show you proof of any negative impact.
I'd also claim the mgage holiday if they just don't pay it could be months till they need to leave.

CheshireSplat · 04/04/2020 20:11

Our tenant has been in for 5 years and is lovely. We've offered him a reduction if his wage decreases, as we don't think our income will be affected by mor than 20%. We'd definitely give him 3 months rent-free and would consider more if necessary. We'd budgeted for the house being empty 2 months out of 12 so are quids-in through luck.

Stet · 04/04/2020 20:13

@TheEndIsBillNighy We are probably going to do the same. One of our tenants was about to start a new job, which has been delayed, and the other has been furloughed. They're applying for universal credit but not sure if they're eligible. I've said not to stress about it, just let me know what happens at the end of the month and what their finances look like and we will work it out. They have been good, loyal tenants and we can afford to cover the mortgage entirely if we need to. I think compromise is the name of the game right now too. Landlords shouldn't necessarily be totally unaffected while tenants are on their knees, after all. These are weird times and sacrifices will have to be made on both sides.

Stet · 04/04/2020 20:15

In this case, I would ask what they think they can manage and see if you can go from there.

ChicChicChicChiclana · 04/04/2020 20:17

If they won't demonstrate why they need a rent reduction then don't give it. Not rocket science.

originalusernamefail · 04/04/2020 20:19
Smile
Redglitter · 04/04/2020 20:20

Firmly pass it back to them. Tell them there will be no reduction until they discuss figures with you

MrsPworkingmummy · 04/04/2020 20:21

OP, my tenants pay via their disability benefits. Because of this, we are not reducing rent as their income is unaffected by Covid-19. People cite mortgage holidays as an easy option, but this money still needs paying back over the rest of the mortgage term. Are your tenants prepared to pay a higher rate once this is over if you reduce rent in the meantime? To give them credit, they have asked you , rather than simply not paying, but I think you should tell them what they'd have to pay in 3 months time following your mortgage break if they are wanting a lower amount now.