Landlords and temporary Rent reduction

My long term tenant has asked me to drop the rent down as she cant go in to work over fear of contracting the virus.
Says she is on emergency annual leave?
While I want to help if this is genuine, she still has outstanding rent arrears from being out of work previously.
Can I ask her for something from her employer outlining her situation before we come to an agreed rent deferral?
Yet again the government has landed this on landlords to deal with.
 
Chipmunk said:
Am I right in thinking if I take a payment break of 3 months on 2k per month with 20 years left on mortgage and a rate of 5% instead of paying back 6k I will be paying back more like 16k. I.e. 6k over 20 years at 5%.
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You're paying 5% interest on your mortgage?!
 
Trendisyrfriend said:
she cant go in to work over fear of contracting the virus.
Says she is on emergency annual leave?
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That sounds like it's her choice rather than one faced by many others losing their jobs at the moment.

Trendisyrfriend said:
Yet again the government has landed this on landlords to deal with.
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I'd suggest she should be assessing her social welfare entitlements. The government may introduce measures to support private tenants, if you move ahead of this you may lose out.
 
geri said:
Stephen,
Or maybe the landlord gets the hap payment less the tenant contribution if they are not paying it. This way no one looses out completely.
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As far as I know, the tenant's contribution is paid directly to HAP unless the rent exceeds what HAP pay in which case the tenant tops it up by paying the difference to the landlord.
I agree with Brendan, the full rent should be due but you can agree a payment plan with the tenant.
It would be up to the council to waiver the tenant's portion of the rent (if applicable) and I can't see them doing that.
 
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Stephen Brennan said:
Sorry, misread your message the first time around.
As far as I know, the tenant's contribution is paid directly to HAP. The landlord should still get the full rent and it would be up to the council to waiver the tenant's portion. Can't see them agreeing to that.
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Yes, but my suggestion is that the council could subtract the tenants contribution from the payment to the landlord if the tenant doesn't give it to the council. Maybe I'm not explaining myself well. Almost like the landlord is now paying the tenants contribution. That way the landlord gets paid something, the council doesn't loose out and the tenant feels secure. Maybe I'm missing something. The computer probably says no
 
Leper said:
I don't know anybody who was not affected somewhat by the Covid-19 situation. Is there a legitimate reason why landlords should not be affected?
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I don't see how landlords won't be the worst effected. There is no way to get money from tenants, no way to evict, and no way to chase for money afterwards. However the banks will chase the landlord for the money if they have a mortgage.

Since most landlords have one property and not all have mortgages, for all it will their income immediately effected.

It certainly won't make being a landlord more attractive, that's for sure.
 
AlbacoreA said:
I don't see how landlords won't be the worst effected. There is no way to get money from tenants, no way to evict, and no way to chase for money afterwards. However the banks will chase the landlord for the money if they have a mortgage.

Since most landlords have one property and not all have mortgages, for all it will their income immediately effected.

It certainly won't make being a landlord more attractive, that's for sure.
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What's the workable solution?
 
Leper said:
What's the workable solution?
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I honestly don't know.

I guess the govt and the banks have to come up with a plan to put everything on pause for 3-6 months. As much as they can. No doubt a some economic activity can't handle that and will collapse.
 
I'm not clear on the proposed 'rent /eviction freeze' legislation.

Is it proposed that no evictions can be carried out during the next three months, or does it include notice of eviction?

If I wanted to sell my house in September for example I would want to give my tenant notice now.

Is the rent freeze to say tenants pay no rent at all for three months? Or there's no increase to be applied for three months, even if previously notified, or you can't give notice of a rent increase to take effect in say Sept.
 
Brendan Burgess said:
You cannot drop the rent down.

By doing so you will be limited to increasing it by only 4% in the future.

You must tell her that the full rent is due, but that you can agree a payment plan.

Brendan
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You can drop the rent. If you don't you're at more risk of losing the tenant. Since were no earnings greater than less earnings?
And more important, what's the chance of nearly all rentals being reduced when this pandemic is over?
 
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If I could afford it I would give the tenant 2-3 months free rent and be expecting a rent but afterwards to match the average in the area. If you can afford it. It's no difference of a tenant leaving and missing a month or two. Recent landlords might not be used to this but missing a couple of months rent used to be very common when switching tenants.
 
Trendisyrfriend said:
My long term tenant has asked me to drop the rent down as she cant go in to work over fear of contracting the virus.
Says she is on emergency annual leave?
While I want to help if this is genuine, she still has outstanding rent arrears from being out of work previously.
Can I ask her for something from her employer outlining her situation before we come to an agreed rent deferral?
Yet again the government has landed this on landlords to deal with.
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You can ask. But if she does stop paying there is nothing you can do about it. The tenant could be genuine but all signs are that they are a Messer and you can expect more hassle going forward.
 
Leper said:
You can drop the rent. If you don't you're at more risk of losing the tenant. Since were no earnings greater than less earnings?
And more important, what's the chance of nearly all rentals being reduced when this pandemic is over?
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It's likely all rents will fall. The question really will be how much supply will come back on the market, and will demand still be there. There is a possibility demand and the housing crisis will be even worse after this crisis.

I'd expect a lock down for 2-3 months and economy will take 6 months to restart and it will be changed. A Landlord should be taking that long term view.
 
Thirsty said:
Is the rent freeze to say tenants pay no rent at all for three months?
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No, it's a freeze, the rate cannot be increased (once the measures are passed). There is no suggestion that rents would not continue to fall due. See here:

While tenants will be expected to pay rent during this period, income supports and Rent Supplement is available to those struggling to do so. These supports are provided by the Department of Employment Affairs and Social Protection. Any rent arrears built up will be payable, but landlords have been asked to show forbearance and reach local arrangements in such circumstances.
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I can't see any mention about falling rents? They are not frozen if they can fall. I'm being pedantic. But I'm surprised its not clearly stated somewhere.
 
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