Coronavirus – Covid 19 – Open Letter To All Landlords And Tenants

Reply to the comment left by Chica at 23/03/2020 - 23:26
I believe that is the intended purpose of it, and to share it on Social Media to raise the issue wider.

By all means share and link to the article.

Thank you, it's a really useful summary.
We have tenants with guarantors - so I wonder how that might affect this as well?
We fully wish to support our tenants - but as you alluded to - the first ones ( and already have another pending request this morning) to ask us to 'suspend' their rent, were quick to align this to the mortgage holiday we would receive. I did think that they might possibly be conveniently not grasping the concept of 'free money'....it's a very tricky situation to manage, compassion V some kind of practical business fairness?? Any practical views or links to guidelines much appreciated. Thanks.

Reply to the comment left by Alex Russell at 23/03/2020 - 07:06
Very helpful article, I have the same issue as the above. I am already being told by Tenants they have no work. And a shop I have on rent sells food is open but tenant said business is slow. So i don't know where i stand and what to do

This is very good. Common sense perhaps, but I think a lot of people are treaty this as an excuse to not pay. Am I able to copy this and send to my management company? I’d love them to send this to all landlords and tenants. Thank you.

As others have already said, a great level headed post.

As landlords, if your tenants have not been in touch already it might be a good idea to plan what your response will be if you do get the call.

Perhaps have a few alternative solutions. I guess each household will need to be handled differently depending on the circumstances.

Offering a 3 month payment holiday will obviously build up a sizeable debt for the tenant and if their income has been decimated due to the virus, this may be hard or impossible to repay.

80% payment for furloughed tenants sounds like a sensible offer though.

Reply to the comment left by Peter Waller at 28/03/2020 - 07:40
Rather than copying it, please send them a link.

We want them to know what Property118 is all about.

Reply to the comment left by Mark Alexander at 28/03/2020 - 11:26Well done to Anon for posting his very helpful article that I have already shared today with another landlord who is affected directly.
To say things are changing quickly would be a gross understatement. I have seen today the action taken by Direct Line insurers at https://www.landlordzone.co.uk/news/breaking-direct-line-confirms-doors-closed-to-all-new-rent-guarantee-policy-claims?utm_campaign=LandlordZONE%20newsletter%20Mar%2028th%202020&utm_source=emailCampaign&utm_content=&utm_medium=email
I would take the view that the fact there is no legal framework available that would enable an insurer to pay claims now that evictions have been suspended for three months by the government and the fact landlords are able to apply for a three month payment holiday on their BTL mortgages if necessary, is to conflate different issues as settling a landlord’s claim for loss of rent is not a precursor to a lender or the landlord evicting the tenant and a suspension of mortgage payments is no substitute for loss of rent. But what does my view on these non sequiturs count for?
I don’t know whether any other insurers have yet followed suit and I suspect Direct Line’s position may be open to legal challenge.
Direct Line do acknowledge though that “Once this three-month period has ended, and providing the Government re-establishes the legal process, we will be able to progress with the claim as per the policy guidelines.”
With the crafty caveat “Following the end of this period landlords and their tenants will then need to work together to establish affordable repayment.”
We can guess what that means and claims will only be entertained when landlords can demonstrate they have been unable to recover the rent arrears. “Surely you have not tried hard enough yet to recover your rent Mr Landlord. Please make a bit more effort.”

Might this be the start of another Property 118 crusade?

Just one slight problem with para 10 - We have Rent Guarantee and Legal Cover but have been swiftly informed that in a Pandemic such cover is suspended!!
Anyone else with a similar problem??

Reply to the comment left by at 28/03/2020 - 14:29
I have just spoken to Chris Sheldon at LettingSupermarket and the rent guarantee insurers (DAS) will definitely pay out.

Chris also emailed all landlords and tenants earlier this week and was delighted to report that problems are a tiny fraction of what he first feared.

Sensible forecasts show that the LettingSupermarket business model will remain profitable even if no new Lettings occur in 2020.

Reply to the comment left by at 28/03/2020 - 14:29
PS - DAS are the largest underwriters of RGI cover in the UK, by far!