While the government are making every effort to support landlords and their tenants through the coronavirus pandemic, here at Fodens we understand that you may still be feeling a little lost in a maze of information. To try and help you find the best solution for both you and your tenant, our team have put together a list of different directions you can take that will help you work together to navigate your way through these challenging times.
If you have a buy-to-let mortgage and find your tenants are struggling to cover their rent, you can contact your lender and apply for a three-month payment holiday. This will help landlords by reducing the financial burden, allowing you to be as flexible as possible with your tenant.
Do note that there are certain terms that come with the payment holiday. It has been designed to offer some level of security to both parties, and so no one can be evicted during this three-month period. At the end of those three months, you will also have to work together with your tenant to find out exactly what sort of financial position they are in and negotiate a practical repayment plan.
If you have a trusting relationship with your tenant, then try to show as much flexibility as possible. You could consider offering a temporary reduction to help alleviate any financial struggles, or if you’re not in a position to do so, you could consider changing from quarterly to monthly payments. For some tenants, even pushing the rent due date back by a week or so could prove to be a huge helping hand.
Also, if a rent review is due at any point during this crisis, then try to defer it for as long as possible. The date in most tenancy agreements is not usually set in stone and does offer some flexibility. Typically used for negotiations or mediation – check your agreement or contact us. Use this and wait until the current government restrictions are lifted to help your tenants avoid being faced with an increased payment that they may not be able to afford right now.
Many tenancies require the tenant to pay a security deposit or list someone as their guarantor. Don’t be afraid to use these. They were included in the contract for situations where your tenant is unable to fully cover their rent, and if this is one of those times, then it’s worth exploring them.
Contact their guarantor to see if they can help cover any arrears, costs and expenses, or consider withdrawing funds from the deposit. Make sure to discuss this with your tenant and determine whether or not it would be realistic to expect them to repay this at a later date. Or if you feel comfortable doing so, you could choose to waiver the amount. Just remember to bear in mind that this is a short-term fix and the deposit will eventually run out.
Most importantly, don’t forget to engage in open communication with your tenant. Remember that this isn’t just a property you’re dealing with, but also families who are being affected by the current situation as well. Make sure to voice your concerns as soon as they arise and try to work together with your tenants to negotiate a suitable resolution for everyone.
If you find that your tenants are struggling and you’re unsure about what steps you should take next, our friendly team are on hand to offer expert advice. We understand that while we are all in a similar situation, each situation is still unique and that’s why there are so many options available to you. By getting to know you and your tenant’s current circumstances, we will help go through all the options available and find the best one for you.
Contact us today and one of our experts will help guide you through these unprecedented times.
Share this post
Back to all