Can landlord claim back a COVID rent discount?

I gave a 40% discount for 4 months to some who were struggling [zero hour contracts] so that both of us could survive. Some was better than none and no future payback was demanded. Can't say I regret it as overheads were covered and all I lost was some profit.

A court case won't settle this as each landlord will have agreed to different terms for the discount. It will be even worse if landlords haven't specified it in writing and just used wishy washy words to offer the discount.

Unless the landlord has specifically stated it in writing then trying to claim back any discount will be difficult.

The terms of the tenancy agreement are still binding and once the Covid emergency is over, the normal rent should apply. With my son's tenancy, which I manage for him, we stated in writing that the tenants could have a 10% discount for the duration of the term of the tenancy. We also allowed the rent to be deferred for the duration of the first lockdown with the stipulation (in writing) that once the first lockdown ended the deferred rent would need to be paid in monthly instalments over the remaining term of the tenancy. The tenants paid the deferred rent without any issues.

If a landlord tries to increase the rent to recover their loss, the tenant is free to go.

What it boils down to is how water-tight was the agreement for any discounts or concessions. Each landlord will have to resolve it for themselves. One over-reaching court case won't settle this but the government could legislate that landlords can't recover covid discounts.

Any tenant is free to serve notice to quit once their AST term is over and no court can prevent them from doing that.

The post highlights the casualness of many landlrods, and quite a lot of agents.

Any chnage in rent should be documented in writing and, as highlighted, should specify if the change is temporary and also wheteher a reduction is a simply a deferral.

Personally I made a few discounts for those tenants who were up against it. I wrote to them and told them it would be a temporay rent reduction and that they would not be expected to make it up in the future.

I can't see the point of any landlord pursuing a tenant if the terms were not made clear.

Thanks for the comments to date. Yes, where my own tenants are concerned I was careful to stipulate the exact terms of the concessions I was giving (using the NRLA COVID rent concession template helped) however, it seems many landlords have acted first then only considered the legal niceties afterwards, once they realise their tenants aren't in any hurry to pay back the discount...

if its termed a discount it would be reasonable to expect its not something to be paid back. how long the discount lasts is another issue. if the rent is just deferred/ payment plan for lower rent now catch up later than thats different

Reply to the comment left by Darlington Landlord at 01/04/2021 - 21:40
Good summation.

I had an email conversation with the tenant (so it was 'written' and agreed) that he could have a reduction for the first furlough period but that this MUST be paid back when he went back to work etc. He gave notice to leave shortly after but an agreement was struck that he would leave earlier instead of paying back the rent reduction. He got to move quicker as he wanted and I recouped it from the deposit instead. (luckily no damage or it would have been more complicated...)

Reply to the comment left by Darlington Landlord at 01/04/2021 - 21:40
Yep, agreed with Darlington Landlord, the term discount pretty much suggest no expected repayment, one might even think the term discount was used, then the Landlords changed their mind after the fact.

I run an agency and we had to deal with lots of cases.

Did you put it in writing? Everything should be in writing. Make the call, it is much nicer to hear a voice and better to express yourself and allow them to express them selves. Then follow up with email your agreement.

As someone above stated. Discount means discount.

With our tenants we Gave part discount part deferred, and or a combo. With a limited time and said we will review at situation Every 1- 3 months depending.

This may be useful for anyone still in this situation.

Good luck all

A discount is a reduction in the rental figure.
If not told the tenants how long this would be for, or not agreed mutually, then I would have presumed that this would be for a long as the Covid pandemic was still that and would take the discount period would end when furlough is removed.
It would be a complete waste of money to take this to court as there would be no breach if the tenancy I would have thought.
It is always necessary to be absolutely clear re rent and to put it in writing