At Andrew Lees, we are keen to support local landlords as best we can. We know these are challenging times, and many landlords are looking for guidance and support.
If you would like to arrange an appointment regarding how to best manage your rental property and care for tenants, we are here to assist you. Please contact us today and we will do our best to assist you.
Follow basic rules and feel more confident about letting property
The National Residential Landlords Association, the NRLA, drafted “Golden Rules” to help sustain tenancies in the rental housing market.
The Golden Rules for dealing with tenant disputes, as created by the NRLA, are as follows:
1. Communicate
If rent cannot be paid in part or full, tenants and landlords should discuss the situation as soon as reasonably possible. It is important for landlords to be flexible and have a frank and open conversation with their tenants at the earliest opportunity, to allow both parties to agree a sensible way forward. It is important that landlords try to understand:
the cause of the arrears;
whether the tenant, their dependants, or other occupiers have been affected by coronavirus and how this has impacted on their ability to pay rent;
the tenant’s general financial situation; and
what ability there is for a payment plan to repay arrears.
2. Establish
Whether the tenant may be considered vulnerable, such as disabled or a single parent - this guide will help you. If the tenant is in the vulnerable category, local authority housing options teams can also give advice and support.
3. Signpost
Landlords should point the tenant to organisations that may be able to provide support or advice on benefit entitlement and debt management. Your local council can also offer help and advice, including funding to help pay your rent, called discretionary housing payments (DHP). Other organisations include: ·
Citizens Advice– 0344 411 1444 ·
Shelter - 0808 800 4444
4. Agree
Seek to agree an affordable payment plan, based on the tenant’s circumstances, where this information has been shared. Guidance for tenants and landlords on how best to manage conversations about arrears is available from the NRLA and other partners here.
5. Be clear
Landlords should provide clear rent statements for 3-month periods (or 13-week periods, if rent is paid weekly), showing any temporary reductions in rent or deferred payments.
Guidance, including templates for agreeing such reductions, are available from the NRLA.
6. Consent
Where the tenant is claiming benefits, explore seeking consent for payment of any housing element to the landlord. As a last resort, you can also request deductions to repay arrears - but neither you nor the tenant can choose how much is deducted as they are automatically calculated. This could lead to higher deductions than a tenant feels they can afford. You can find out more by ringing the Universal Credit Helpline – or the tenant can arrange by speaking to their work coach or UC advisor.
7. Guarantors
If there is a guarantor in place, actively involve them in discussions with tenants regarding payment of rent. Bear in mind that the financial situation of guarantors may also have changed.
8. Mediate
If you cannot initially agree, an independent mediator could help resolve your differences without the time/cost of taking a possession case to court.
9. Record
Landlords should keep copies of all documentation and a record of all contact with the tenant, and provide the information to the court should proceedings be necessary.
Ben Beadle is the Chief Executive of the National Residential Landlords Association, and he said; “Despite the courts opening up again, it does not mean that repossessions are an inevitable consequence where tenants and landlords have struggled due to COVID-19. The Golden Rules published today provide all the advice needed to sustain tenancies - but it is incumbent on both parties to speak to each other.”
Ben also said; “We welcome the framework developed by the Government to ensure courts can begin to hear possession cases again. In such challenging times they broadly strike the right balance between protecting tenants affected by COVID and the need for landlords to tackle the most severe cases including anti-social tenants and cases of extreme rent arrears.”
Ben concluded by saying; “That said we remain concerned that the expectation for landlords, the majority of whom are not property tycoons, is to go without rent for anything up to a year before such cases are deemed a priority. Such a position is not sustainable, especially as there is almost no chance of the rent arrears being recouped. We will continue to raise the difficulties that this will cause.”
As an experienced letting agent serving the Bridgwater community, and many of the surrounding areas, we are here to help. We promise to stay in touch with the latest technology, helping our clients to achieve more, and we aim to support the local community as best we can. If there is anything, we can assist you with; please contact Andrew Lees Lettings today.