By This comes as renters’ unions are calling on the Government to suspend rents for the duration of the coronavirus crisis. But Paul Shamplina, founder of Landlord Action, says there is no ‘one size fits all’ approach, as landlords too have bills to pay and families to feed.
He comments: “This is a nightmare scenario for everyone – landlords and tenants alike. It is really important that landlords do what they can to sustain the tenancy if possible, bearing in mind the court system is suspended and if a tenant vacates, there is a worry the property could be empty for a while.
It is about working together in a practical way, understanding each other’s limits and supporting one another as best we can to get through this. I know of landlords who are in a privileged enough position to hold their tenants’ rent and have done so.
However, the vast majority of private landlords own one or two properties, many with mortgages, and they too will be facing the same challenges of job losses.”
In the survey, 36% of landlords said they would struggle to pay their mortgage if their tenant did not pay rent this month. Although landlords can apply for a up to a three-month payment holiday on their mortgage if their tenant’s income has been affected by this crisis, with proof, Paul says some landlords are worried about asking for this, because they think it will affect their credit rating.
Also, landlords who had already fallen behind with mortgage payments due to rent arrears prior to the crisis may struggle to access a mortgage holiday.
“We’ve been inundated with phone calls from landlords concerned about rent payments and our advice is this: Speak to your tenants. Understand how they are financially impacted; explain how you will be financially impacted. Where possible try and come to an arrangement with them, understand what government support they are asking for. Having something to help cover the mortgage is better than nothing.”
Landlord Action has also drawn up Rent Repayment Agreements for landlords providing a template which enables them to set out agreed terms of the repayment with their tenant.
Perhaps more reassuring for tenants, is that nearly 70% of landlords who were asked if they could hold off serving an eviction notice if their tenant falls into arrears within the next three months responded yes.
“Good tenants do not become bad tenants over-night. These are extraordinary circumstances, and everyone is impacted in some way.
Those landlords who work with their tenants throughout this difficult time will strengthen their relationship and be far more likely to maintain the tenancy in the long-term. We must all do a little more and give a little more where we can” concludes Paul.
*Survey responded to by 537 landlords
About Paul Shamplina
Paul Shamplina is one of the key founders of Landlord Action with 25 years’ experience in the legal field. He has previously worked as a legal clerk, private investigator, debt collector and certified bailiff.
He has appeared regularly on TV and radio and lectures across the UK at landlord seminars and events and still works full time in the office, heading up the team of advisors.
Paul believes passionately in the rights of the landlord and is always available for comment on any landlord/tenant matters.
Landlord Action run a free advice line to help landlords and property professionals understand their rights: 0333 321 9415
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