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TODAY'S OTHER NEWS

Government urged to suspend rents during the Covid-19 pandemic

Renters’ unions are calling on the government to suspend rents for the duration of the coronavirus crisis after new research found that many people are having to choose between paying landlords and putting food on the table. 

A fresh poll carried out for the Guardian by Opinium shows that a number of renters are currently in or on the brink of crisis, with one in six forced to seek extra financial help to stay afloat.

Kat Wright, national organiser for Acorn, which campaigns for tenants’ rights, said that there is a clear collision course set to develop between tenants and their landlords. 

“We’re facing a huge surge in evictions once restrictions are lifted, and renters across the UK are already unable to pay their rent,” she said. “Tenants need protection from evictions post-emergency and from rent debt accrued during the crisis.”

Some tenants have already faced threats of punitive action from their landlords, according to the Guardian. 

One self-employed renter, who preferred to remain unnamed, told the newspaper that when he approached his landlord to ask for a deferment of rent, he was served with an eviction notice in reply.

Some people who have lost income are being forced into taking whatever work they can in order to continue to pay their rents, often in front line jobs in the gig economy, but Amina Gichinga of the London Renters Union thinks that this is unfair. 

Gichinga said: “Many renters feel they have no choice but to break social distancing guidelines and go out to work, just so their landlords can continue to profit. 

“How are people supposed to pay rent with no income and at least a month’s wait for any government assistance? How are people in low-paid jobs meant to clear hundreds or thousands of pounds of rent arrears in the future?”

Gichinga continued: “All rent payments need to be suspended and rent arrears need to be waived urgently to keep renters safe from eviction and from debt, and to prevent the further spread of the virus.”

  • Martin Pepworth

    The tenancy agreement they signed still stands no law for this has been changed and tenants have no right to have any rent free period. Any rent arrears will have to be paid. As landlords we will have to be flexible with a realistic payment plan when the lockdown is lifted.

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    Martin,

    I agree mainly with your comments. I, being a fellow landlord have reduced the rent to most of my tenants , those who are in work full time stay same. ( some are key workers like working loads of hours in supermarkets ) to help them out. if the tenants get to not pay , how are , we the landlords supposed to - put food on the table, any one thought of that. )

     
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    Indeed. Everything’s interconnected. If you’re going to let tenants off rent, others in the economic chain will also need to be let off other financial obligations. We all pay taxes for Govt. to redistribute/use as is necessary, which includes during times of national/global emergency. Landlords should not need to pay for the pandemic.

     
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    The writer of that article seems to be saying that the rent we receive is 100% profit, we don't have costs, insurance, accountants fees and repairs, many landlords have large mortgage payments to make as well. The answer here might be to agree a short term rent reduction but only in genuine hardship cases, and the arrears to be made good by a short term rent increase when this lock down is lifted

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    plus service fees and ground rent

     
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    And for HMOs: gas, electricity, broadband (& line rental), cleaners, council tax, etc, etc, etc.

     
    Mathew Argument

    I really do believe that most people think of landlords as multimillionaires!

     
  • luigi kippelwich

    This is blatant profiteering from the Pandemic, using the emergency as a pretext to not defer the rent - but to waive the rent to prevent debt.

    No one is demanding free bus rides, free taxi rides or free shopping at Sainsbury's because that is ridiculous.
    Why is it acceptable to demand free Rents?

    Mathew Argument

    Absolutely! Well said! Surely the 80% pay is for exactly this... Roof over someone's head!

     
    Stephen Chipp

    I was wondering when the Supermarkets, Amazon etc were all going to give me my free shopping days!!

     
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    why is it that landlords are perceived as these hugely profiteering megalomaniacs. Two thirds of my income is from rents, they stop and I can’t put food on the table, and I can’t get 80% of my income from the government because they are rents. The government is doing enough with paying 80% of income and as a back up fast tracking Universal Credit. The writer of that article sounds like they voted for Jeremy Corbin!

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    Exactly. These Renters won't have anywhere to live at all when the landlords all have to sell up and get out of the market. Good luck to them then - greedy profiteering and utter nonsense.

     
    Mathew Argument

    Don't think Jeremy Corbyn has anything to do with this... If it was truly down to the Tories no one would get bail outs and only the rich survive!!! The more repos the more cheap property, the more unemployed the cheaper the labour!!
    I'm a landlord and I voted for Corbyn... Look at the country now... Nationalised to the hilt with no prospect of the country being able to actually profit from the Nationalisation!

     
  • David Lester

    Simple; No Rent, No Landlord, No Home! Where will they live?

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    If the government do this,it will have to pay their rents for them ! Will landlords be able to write of their mortgages ! get free maintenance,free insurance, not pay any tax etc etc

    Mathew Argument

    Surely that's what the 80% bail out is for...

     
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    Just absurd. Almost 100% of my income is from rent - how do they suggest I put food on my table.

    As a previous poster said, no-one is expecting free food, free clothes, so why free accommodation?

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    So it doesn't matter of a landlord can't afford to put food on the table if the rent isn't paid?

    I could say - 'No rent, No maintenance - you can go without water, electricity, gas including heating, hot water, a working washing machine, fridge/freezer, oven, hob because I can't afford the repair'. Wouldn't that go down well? Then the tenants would have something legitimate to complain about!

    Everyone's going through a difficult time - why do renters think that they are the exception?

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    This is completely irresponsible of Renters’ unions, it will only lead tenants to be in further in debt having to repay rent arrears. We are all aware that just like mortgages it is not a free period just a break and the money still has to be paid, what Renters’ unions should be doing is advising tenants to seek help from Universal credit, Working tax credit, Housing benefits, governments self-employed grants, or anywhere available to avoid escalating debt.

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    Of course 'we' are all aware but the likes of this bunch Renters Union have failed to engage brain (if they have one, of course) before putting pen to paper so to speak. No rent means no home and there will be many shop doorways with no business going on inside the shops and nobody to send them on their way so they will have plenty of places to sleep.
    Paul Kaye, above, states the obvious if the Gov't do this they will pay the rent. But the rent would come through about as quick as the business loans have been so far so don't hold your breath.

     
  • Matthew Payne

    Sounds almost like a veiled threat, that unless rents are suspended, the virus will spread further. Not sure I follow that logic.

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    I'm fed up with all this anti-landlord crap now, I've always tried to ultra fair, repairs fixed immediately etc, no rent increases for 4 years now. My son is a renter, I'm going to pay ½ his rent for him this month. It's a bill like any other bill. I have offered my tenants a holiday, and this will greatly affect me financially, but I thought, yes we are all in this together. But apparently not. We're always seen as some "child catcher" like figure lurking on the sidelines. 1 of my tenants earns twice what I do.

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    I have a better idea, if tenants can only afford either rent or food then all the supermarkes should provide free food and then the rent can be paid. Simples!

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    The government has done nothing to help landlords.
    Many live on the difference bet rent and mort.
    Many landlords are in a worse situation than tenants.
    Not classed as self employed so no grant. Not employed so no 80% wage paid by government.
    Mort hol crap is a joke we still have to pay it and it will affect remortgaging late on.
    So the landlord has to be sacrificed so tenant who gets all th above does not pay rent.
    What about the tenants who are trashing property and was not paying rent before CV19 we have housing them for free.
    It's about time the government stood by landlords.
    The Nrla should be all over this

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    I would like to buy a new car as I need this to get about but not in a position to do so just now. Can the government please tell car dealers to let me pop in and pick one up ...and I’ll hand the money in later! I honestly despair at these characters who have absolutely no idea about the economics and workings of being a landlord!

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    The only people I feel a responsibility to house are my children. This is my 25th anniversary as a landlord and the job has changed in the main to the state becoming involved with the I know my rights brigade more and more using us as political pawns and have turned us into foster parents looking after badly behaved children in some cases. I would also like to say well done to all good Landlords and Ladies for keeping tens of thousands of People safe In safe housing 👏

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    We are similar Adrian and have operated this way with our own BTL properties and when we owned our letting agency. I would always tell staff and prospective clients “we look for the best tenants, not the quickest” as many other agencies did. I would rather keep them out, than try and get them out.

     
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    Assistance is already there to help with rent payment difficulties through the welfare state, that’s what I and millions of other people have paid our taxes for for many years. You can get it twice buy taxing us then given our homes for free!

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    I agree Alistair. As I sit down to start another Tax return. States should look after people that’s why they exist.

     
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    Who will pay the extra mortgage interest on the unpaid mortgages for 3m?
    Obviously the landlords....

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    Well you will get tax relief on that won’t you!!!!!! Oh forgot they stopped it !!!

     
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    totally agree with all the comments above especially @Kathy Miller. Tenants are able to claim 80% of their wage. I would have thought your rent is top priority leaving you monies for food so what is the problem???? Maybe they will have to cut down like the rest of us (including Landlords) on non- necessities, budget like we all have to ???If tenants are having issues why not instead go to the right place- the Gov instead of the Landlords- Ask the GOV to pay their rents not Landlords. I also would also like to say well done to all good Landlords and Ladies for keeping tens of thousands of People safe In safe housing

  • Paul Barrett

    I'm afraid that it must surely be apparent now to most LL how they are regarded by society.

    They are regarded as not requiring rent and able to survive perfectly well without it.
    Where this very strange perception comes from beats me.

    Now this privately provided service is expected to subsidise the lifestyles of feckless tenants.

    Why aren't these renters unions suggesting to their members that they need to build up savings so that they can pay rent in the event of a personal financial crisis?

    Why should LL be expected to pay for tenant fecklessness!?

    If tenants can't be bothered to save so they can afford their rent if income for whatever reason stops surely that is their lookout.

    Of course many are gaming the system as they know if it was obvious they had significant savings they would not receive UC.
    So many have money in cash.

    There seems to be a societal inference that LL should pay for tenant fecklessness.

    When it comes to accommodation the first thing that should be paid is the cost of it.
    Far better to be starving inside a home than fed and on the street.
    Irrespective of means people will always find food.
    Maintenance of accommodation is paramount.
    Being of no fixed abode brings with it a whole heap of problems.
    Issues can be surmounted but need to be from secure accommodation.
    So tenants you really need to pay your rent or your private housing provider will boot you out when able to!
    Sorry to break it to tenants but there really is no such thing as a free lunch!!



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    I am currently with a few of my partners selling large chunks of our portfolio to a bank as it’s just not worth the hastle they are paying good money for high yielding properties feel free to message if this interests anyone life’s to short and what Paul said is right we have no friends at all anymore give the headache to someone else loads of other ways to make money

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    Hi, I am interested! Let's connect and discuss further?

     
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    Why does LAT keep giving these stories airtime?

  • Mark Wilson

    Even though the article was published by the Guardian, the boot is firmly put in : 'Many renters feel they have no choice but to break social distancing guidelines and go out to work, just so their landlords can continue to profit. ' Real news or fake news? Unearned v's earned income? Its not about the rights or wrongs, it is about how much political traction the lobby can create, for example, I heard a news article that Germany was considering to stop all evictions until July 2021.

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    I think it is about time for some realistic expectations , this propaganda has never been about tenants and their needs
    It is about the extermination of landlords and their families ,just look at the propaganda by the Nazi's
    IN 1938 AND TRY TO SPOT ANY DIFFERENCE , same mentality, same bigotry prejudice and hatred

  • Paul Barrett

    @nwlandlord
    Very interesting the response of you and your associates.
    So far from anectdotal evidence we have it from the proverbial horse's mouth of an experienced LL.

    What I don't understand is why in the absence of sufficient social housing stock or corporate letting property where Govt expects tenants to be housed if LL leave the PRS en-masse.

    It is almost as though Govt are continually piling on the agony and daring LL to sell up but actually hoping most don't and suffer from the bonkers Govt policies aimed at driving LL out of business.
    Does Govt have a plan for housing millions if LL call the Govt's bluff and sell up!?
    This is what happened in Ireland.
    Unfortunately for the dopey Irish Govt the LL called their bluff and sold up.
    There is now a homelessness crisis in Ireland with the Irish Govt now desperately trying to entice LL to return to the PRS.
    The LL unsurprisingly are having none of it and are choosing to retain their capital rather than invest in the long term lettings market.

    This is the nightmare scenario for the UK Govt.
    We will have LL slowly selling up unless compelling offers are made for LL properties when LL could exit immediately.
    It seems that for most LL there will be a slow sell off such that in 4 years time there will be a reduction in the PRS of about 10% especially of leveraged properties.

    It is clear that highly leveraged LL are extremely vulnerable to abnormal economic shocks as opposed to most unleveraged LL.
    When I say highly leveraged I mean any LL between 51% and 100% LTV.
    The 50% of the market that DOESN'T have any leverage is relatively secure though of course those LL relying on rental income for their income are financially vulnerable.
    But the vast majority of LL without leverage on relevant properties are pretty secure.
    Yes it will be damn annoying rent not being paid but they won't face bankruptcy that many leveraged LL will.
    It is the leveraged PRS which faces the real risks compounded by the CV19 crisis.
    Unfortunately many LL are between a rock and a hard place.
    Due to borrowing on equity over previous years they literally cannot afford to sell as there would be insufficient sale proceeds to pay CGT bills.
    So unless such LL can keep on spinning all their proverbial plates then they face bankruptcy once HMRC comes for their CGT.
    The resources simply won't be there.
    With the now potential decline in property values this will just exacerbate the already tenuous situation that leveraged LL are in.
    CV19 will be the straw that breaks the back of many leveraged LL.
    It would be very useful if Govt funded Councils to buy such LL properties at say 10% BMV for the social housing sector.
    I believe many LL would use that as an opportunity to get rid of many of their higher leveraged properties.
    It would also bizarrely for the Tories be a very popular policy amongst the general electorate.
    It would be a escape strategy for many LL facilitated by Govt.
    It would also substantially reduce the HB bill once Councils charge social rents on their newly purchased ex-LL properties.
    Govt could use this CV19 crisis as a way to substantially reduce the leveraged PRS and increase the social housing stock.
    We shall see though I don't expect Govt to behave so pragmatically.
    I expect there to be mass LL bankruptcies.





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    We provide a service and needs to be paid for it just like any other business, no one can provide a service for free. I don't understand what point Mark was trying to insinuate by the comment earned or unearned income, is he saying we don't have to earn it or did it just fell into our lap. I had to work very hard for what I have including building Houses from scratch by my own hand over several decades, still working and pay the Banks enormous interest rates on Commercial loans to service the finance at the same time, so if you think its unearned income why don't you get a job with the Revenue as only they could come up with something like that. It seems to me you are probably a Benefits LL as you are usually knock us for providing accommodation at no cost to Government or tax payer. I don't think you need to worry too much about your Tenants going to work just to make profit for you during this sad time of Corona or any other time, the money will be coming no doubt probably the only occupants that are not affected by any crises, they won't have any trouble proving their status. Have you thought of moving to Germany.

    Paul Barrett

    Yes this ridiculous artificial assertion that there is unearned and earned income comes from the stupid left-wing ideology.

    All income is earned.
    Even shares if they increase in value has been earned.
    The risk of buying shares has been a gamble with income
    As such any appreciation has been earned by that risk.
    The usual dopey lefties don't understand these basics.
    Everyone earns their money different ways but it is all earned by the effort they put in..
    That might be clicking a mouse or working in the fields.
    All LL earn their money however they do it.
    There is no such thing as passive income.

    What the lefties hate is the idea of passing substantial monies to someone for accommodation.

    They simply hate the idea of anyone apart from the State receiving such market rents or social rents as only councils etc can afford to charge social rents.
    Private housing providers are usually subject to market price finance costs along with all the other ridiculous costs that Govt and Councils impose on private LL.
    The left will never understand entrepreneurship.
    They just expect to avail themselves always of other people's money.
    Such an ideology has been proven time and again to be a bankrupt philosophy.
    Capitalism is of course far from perfect but it beats Socialism hands down every time.
    Clever Socialists will always tax the capitalists just enough to keep them going so as not to leave the country.
    A savvy Socialist would not wish to kill the golden goose capitalist.

    Unfortunately for LL it looks like the Tories are trying to kill the golden goose of LL..
    A most bizarre turn.



     
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    In in the eyes of these Guardian crackpots it's the evil landlords that should starve.

    ''Landlords continue to profit''

    What is the objective of our economic system? Every person that gets out of bed to go to work doesn't do it free Guardian morons. Are we breaking the law? There are far better investments with much higher returns than property. We are providing a very admirable service and it's time that was recognised. After all, the government has tried to do it directly and look what a mess they've always made of that.

    I will never understand why lefties think landlords should put their money in to something to give a free service?

    The logic is mind-boggling. How do they expect us to service the repairs, interest, services and other costs? By magic? Do they not think we have costs?

    Why is there a complication here. The answer is simple.

    1) If a tenant cannot afford the rent, because they are not working, should apply for housing benefit.

    2) If they are only receiving a partial salary, 80%, ok we as a landlord, I am prepared to be flexible and reduce the rent by 20% too. We have to pull together in these times. However, sorry Guardian, I cannot pay all the costs and be expected to receive nothing from my asset. This is not communist Russia.

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    @ Paul B, unearned income ? I spent most of last year, and this year so far, cleaning, repairing, upgrading and decorating properties, yes me, I, myself in there getting dirty doing it, unearned income ?, my backside!

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    I agree Andrew. Mind you, I must be one of the highest paid cleaners in the UK! I try to remember that when up to my armpits - never fails to cheer me up then.

     
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    I too have been working on a property that has become vacant.
    The property needed virtually a complete makeover including the garden, which was used to dump all their unwanted rubbish etc.
    All the work I have done to improve the property for the taxman has been for free.
    I have employed some workers to help, because it has been a large task to complete myself.
    To date, I have spent well over £5000 to get it into a good enough state to sell (hopefully).
    I am aiming to sell a property each year until In can get out of the PRS altogether.
    I have some commercial properties which are ok and a listed barn which I aim to rent out for holiday accommodation in the future.
    I have never claimed a penny from the state and I remember in the past when my wife and I were paying above 16% interest rates on a business loan.
    These people that are focusing their negativity on landlords need to understand the 'real picture'.
    Things seem to have got worse since the outbreak of the coronavirus, with the left-wing concentrating on blaming landlords for the economic impact it is having on the population of renters.

     
  • Paul Barrett

    If Govt was pragmatic for say the next 5 years it would amend CGT regulations to allow LL to sell as many properties as they want as though they had sold one every tax year.
    If they did that there would be an instant mass sell off by LL who are desperate to get out of the PRS.
    As it is we are reduced to one sale per year for tax effectiveness purposes.
    It will take me 4 years to get out completely when I'd like to go tomorrow!!!

    I don't believe Govt appreciates how many LL wish to sell off most or all of their properties.
    This CV19 issue and the Govt attitude towards LL has really been the final straw.
    There will also be another final straw along shortly when the dopey Tories abolish the AST and S21.

    Surely if Govt facilitated LL to sell quicker it would be far quicker than hoping the poison of S24 will drive LL out of the PRS!?


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    donate proceeds to charity?

    tic

  • Dawn Wellam

    I am a landlord and use an agency and not all landlords are greedy I rent my home out as I am living in Italy.The rent I receive pays my rent here and I am not working as an esl teacher now due to coved 19 but I still have to find my rent here.Therefore not everyone is a rich landlord and are also suffering.

    Paul Barrett

    Please define at what point you consider a LL becomes greedy.
    You are one of the many idiot holier than thou LL that state they are not greedy LL.
    Yet you and none of them will state at what rent level a LL becomes greedy.

    You should reconsider your stupid platitudes about greedy LL.
    There are LL that choose to charge market prices and others like you that supposedly don't charge market prices.
    A LL charging market rents is not greedy.

     
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    I am a LL and its obvious to me that one has to work together. Its really pointless evicting a tenant as it will be hard to re-let it at the moment. I have reduced 95% of my rents. If they remain in full time employment, like supermarkets leave as is. The tenants will NOT have to pay back any of the reduction either. All seems gud and none have asked for a rent free period. I look at the situation on a month to month. But definitely May and think June will be reduced too.

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    Does anyone have any update on the rent arrear situation.

    I have a tenant 3 months in arrears - section 8 or section 21 - can i check if it is 12 weeks notice from the date the notice is served and then another 3 months waiting for the court hearing due to the back log so in total 6 months if your lucky?

    Matthew Payne

    Hi Jasmine, section 21 is 3 months notice from the RDD, thats it - you can serve that if you wish. New Court proceedings suspended for s8s until at least end of June (90 days from 27 March), but there will be a backlog of new cases. Avergae time is 5.5 months at the best of times, I would allow 8-9 months minimum. If you want to remove the tenant, s21 will be the easiest and quickest, provided you have finished any intial fixed term, and provided they move out otherswise you would need a Court order to gain possession even after the notice has expired.

     
  • Paul Barrett

    What chance is there of a rent defaulting tenant moving out before formally evicted!?
    I'll tell you; precisely ZERO.
    Tenants know LL don't stand a chance of Civil Recovery which is why very few LL ever bother with CCJ's.

    So tenants will use this even more dysfunctional eviction process to default on rent.
    Even if receiving income they won't pay their rent.
    They will use the very lengthy eviction period which could be easily 2 years to build up a rather nice amount of savings as they won't be paying rent.
    They will also default on utility bills and if bills are included in rent and in the LL name even more unrecoverable costs.

    I suppose it might be worthwhile applying for a CCJ after 2 months rent default which is 1 month and 1 day where rent paid in advance.

    But even then the chances of any tenant paying a CCJ are ZERO.
    Apparently Courts do not even register a successful CCJ on the Registry Trust unless a special application is made and even then by all accounts the court ignores the request.

    Easy to see why LL don't bother with CCJ.

    I'm afraid that many hundreds of thousands of tenants will take the proverbial out of LL and there is very little LL can do.
    Not legally anyway.
    Which is why I expect many LL to move to the darkside in order to prevent personal bankruptcy.
    Who could blame them when you have Govt processes essentially supporting feckless rent defaulting tenants without any care for the LL.
    Govt just believes that LL should support tenants in their time of need.................with what......shirt buttons!?

    If LL didn't realise how parlous their circumstances can be made by Govt and feckless tenants they must surely realise now!!

    For those LL that will at considerable cost to themselves survive bankruptcy will they continue in the same old way!!??

    Of course and very unfortunately many LL will be bankrupted by feckless rent defaulting tenants.

    LL will receive NO sympathy or empathy from Govt or Society in general.
    Most of Society will believe that such private LL will be receiving their just deserts!!

    I'm afraid if LL never realised how despised they were they must surely realise now.
    Govt is NOT assisting them in any way.
    Mortgage deferment is NO assistance at all.

    What about LL without mortgages who rely on rental income for their income!!???

    They can't even claim UC as most LL have equity of more than £16000 which means they are disqualified from claiming UC.
    Have yet to see a supermarket accept a brick as a payment method as part of the property equity!!

    I'm afraid that many LL are in for some extremely distressing times.
    They aren't even allowed to control their business effectively as the usual course of action is to get rid of rent defaulting or otherwise incapable tenants.

    LL aren't in control of their personal capital.
    Govt is dictating how it is used or not as the case maybe!
    Reality has arrived to the PRS.
    LL who survive must surely accept the old ways of doing things are no longer worth risking.

    Surely there will be massive changes in the PRS which I see massively reducing in capacity.
    This CV19 is a shot across the bows.
    LL who ignore this will be fools if they are insufficiently resilient when the next lockdown occurs as a response to the next pandemic................and there WILL be one!!


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    We'll just have to take the law into our own hands again just as we did in the 80s and 90s

     
  • Paul Barrett

    Hmm! Can easily see it.
    LL is advised to visit his rental property to occupy it.
    There will be a surrender document and tenant keys waiting for him at the property.
    Will be advised to have locks changed if they haven't already.

    Cost for this will be about £500 paid to certain gentlemen.
    No tenant can dispute a signed Tenancy surrender document.
    No tenant will ever be able to prove duress!!
    Smug rent defaulting tenants had better watch out!!

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    Yes Paul push us too far and it could happen.

     
  • Paul Barrett

    Unfortunately when you have feckless people basically destroying your personal financial security it is understandable if people react accordingly despite any stupid laws.

    Needs must and all that!!

    Sensible countries like Australia facilitate eviction after 2 weeks of rent defaulting with the police removing rent defaulting tenants if they refuse to vacate.
    Funnily enough there isn't much of a problem with rent defaulting tenants in Oz........wonder why!?
    It seems most tenants proritise paying their rent as they don't wish to be booted out by police or they vacate before the two weeks are up.

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    I treat people as they treat me and can see nothing wrong with that.

     
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    @ Sebastian, firstly I like to be able to trust people which generally pays off, however abuse my trust and they become feckless, Sebastian I think you understand very little chap.

  • Paul Barrett

    I think it can be safely said that many tenants have become feckless which I consider has been a surprise to many LL.
    Such LL may well have considered what they thought were good tenants were not in fact providing any sort of financial resilience for themselves.

    It seems even supposed good tenants lead a feckless just in time lifestyle.

    Essentially the LL is put at great financial risk by the feckless lifestyle of what was supposedly a good tenant.
    Such tenants must surely have savings to cover loss of income.
    It seems NOT.
    Are those sort of good tenants GOOD tenants!?

    I suggest not!
    Feckless tenants are not the usual suspects.

    It would therefore seem reasonable for any LL to ascertain the status of a tenant to be able to service their domestic financial fixed costs in the event of income loss.
    A tenant no matter how good a job without savings is a very risky tenant as CV19 has proven.

    Different if the job is a Govt or Council one.
    They are paid regardless.
    So even if lower paid they have wage security and don't need a level of savings that much.
    It is clear that fecklessness is reckless and not having resources to meet rent commitments in the event of income loss is clearly irresponsible.
    Few tenants are prepared to adopt a boring lifestyle to enable them to accrue reasonable savings.

    Not doing so to me shows a level of disrespect towards the LL.
    Being able as a tenant to advise the LL that the tenant has sufficient resources to pay the rent for at least 6 months in the event of income loss would be very reassuring for a LL.
    Would LL not want such tenants in future rather than the ones who purport to be good but are easily unemployed.
    There are very few tenants that are respectful of their LL.
    If they were they would have ensured financial resilience for themselves.
    Few tenants do this.
    Most live a feckless just in time lifestyle.
    This means that the LL is very vulnerable to such a feckless lifestyle.
    A rather significant business risk!




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    Paul, you and I were brought up to save and pay our way, the young of today live the lifestyle from one payday to the next, and yes the just in time lifestyle, in fact many middle aged people live that lifestyle as well, these people are our customers because they will never own property, their fault, their problem, but we benefit from these mugs, without them we would not have tenants, so far other than 1 commercial tenant all are paying me in full, the 1 commercial tenant that cannot pay me at present has been an excellent tenant of mine for over 25 yrs so I will trust her and I want to keep her as a tenant.

     
  • Paul Barrett

    I believe that many tenants live the just in time feckless lifestyle because they know the eviction laws and process are very much in their favour.
    They know LL stand very little chance of recovering rent arrears.
    Essentially being a tenant comes with very little moral hazard.
    They know if eventually evicted that social housing or rent assistance waits.

    Hardly much of an incentive to be a responsible tenant!!
    Very few Australian tenants have this feckless lifestyle as they know police can boot them out after 2 weeks of rent defaulting.

    Unfortunately the dysfunctional eviction process facilitates fecklessness rather than responsibility and this is projected to be made even more difficult if nigh on impossible.
    Tenant fecklessness and consequent increased disrespect for LL will occur as a result.

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    same in germany--pay rent and you are secure

    dont pay rent and you are out

     
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    And a fine system it is in Germany.

    Ans also their system demands that when you leave, YOU have to have the property renovated to the same condition you found it, as well as when you move in, you have to put in a NEW kitchen, and take it out when you leave.

    It works like clockwork every time and evictions are hardly known.

    Paul Barrett

    Unfortunately what works in the German property market will never work in the UK property market.

    It really shouldn't be a difficulty to remove rent defaulting tenants in timely fashion.
    Problem is it is!

    Govt won't be making things easier to evict rent defaulting tenants in my lifetime.
    For me that is all that matters.
    It incentivises me to get out of the PRS

     
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