Advice for Landlords During the Pandemic

During the past few weeks there have been significant changes for us all. The Government has fast-tracked legislation to protect tenants, including a three month ban for residential evictions, which means that any tenants are secure in their rental property for at least three months from 26th March 2020, but this may be extended.

S21 notice extended from two months to three

Landlords can still serve notice to tenants, however the notice period for a S21 eviction has been extended from two months to three. You would then be able to carry out the eviction once the ban has been lifted.

Arrangements with tenants

With some tenants facing an uncertain future financially, the Government is expecting landlords and tenants to work together to agree “an affordable repayment plan”. Where possible the tenant should pay what they can afford so they don’t build up significant arrears.

Whilst you may prefer to recover all rent owing, communicating with your tenant and making an arrangement to offer rental holidays and/or allow tenants to spread payments over several months may be the best way forward, especially for tenants that you want to keep.

Mortgage holiday and insurance

Under these circumstances, you may want to consider asking your mortgage provider for a payment holiday to be able to afford arrangements with tenants.

You can also check what rent arrears and eviction cover your insurance provides.

County court judgment for rent arrears

Further down the line, when the situation has eased somewhat, if your tenant has perhaps moved on and stopped paying any arrears accrued, you do have the option of going to court to obtain a judgment. This can then be transferred to the High Court for enforcement under a writ of control.

However, if they are still struggling financially, then they would be unable to pay anyway and there may be insufficient goods to take control of to clear the debt.

New tenancies

If you are taking on new tenants, then consider asking the tenant for a guarantor, who would be legally obliged to pay the rent if the tenant is unable to.

If you need to evict tenants

If you already have a possession order or you think that you will need to evict tenants once the ban is lifted, get in touch with The Sheriffs Office at client@thesheriffsoffice.com for further information on the process and what you can prepare in advance.