The landlord press is full of stories of the thousands of tenants in arrears, the alleged ‘tsunami’ of eviction cases going through the courts and the problems that this will create.
Maybe YOUR tenants are in arrears of rent? Or maybe they will be in difficulties as we come out of lockdown and the furlough scheme comes to an end?
But did you know that eviction is not the only way?
A kinder solution
The best way to deal with rent arrears is to help your tenants pay their rent. Rather than going to court and evicting them.
Advantages are:
- It is a lot quicker than court action
- You may be able to recover all the arrears
- Your tenant may be able to afford the rent going forward
- You will avoid the cost, stress and hassle of court proceedings, and
- Voids and looking for a new tenant once they have been evicted, and
- You will have a grateful tenant! Never a bad thing.
So what is this new way?
Basically, it is helping tenants to:
- Check their benefit
- Apply for Local Authority grants and funding, and
- Apply for other grant aid
Grant aid for tenants
It is not often realised that there are thousands of charities and organisations willing to provide grant aid to assist tenants who are in difficulties with their rent.
For example:
- If your tenants have ever worked in the armed services, they may be eligible for grant aid from SSAFA
- If there are children, then Children in Need may be prepared to help
- If anyone in the household has been in prison, you could try Unlock, and
- If tenants have previously worked in hospitality, you can try Hospitality Action.
These are just a few of the many charities out there that can provide grant aid to help your tenants clear their arrears.
A new Kit
To help landlords, and in particular letting agents, deal with this issue we have developed a new Landlord Law Kit in association with Julie Ford (who specialises in this work) – The Helping Tenants in Arrears Kit.
This :
- Provides step by step guidance on how to help tenants in this way
- Links to relevant websites
- Video help and guidance from Julie Ford, and
- (For people who buy the +Plus version) Documents and letters for you to use.
The kit is available here or via the button below and the information/sales page includes a number of videos giving examples of the help that can be given – such as the video below:
Click here to find out more about the kit
There is nothing new with helping tenants to pay their rent. Landlords have always done this. Usually the tenant takes the mickey in return but there is the odd good one that responds in an appropriate manner.
As an example of one that didn’t, I had a guy in an HMO that was struggling for work so fell behind with his rent a long way. His name is Tony. He was an ex soldier and on his behalf I contacted the Royal British Legion to see if they could help. They in turn contacted Tony’s old regiment and between them they settled his arrears but weren’t prepared to pay his rent going forward so I started giving him work, though must add that I didn’t really trust him.
One day whilst working with me and another guy (Tom) from the same HMO that I was also helping this guy clearly wasn’t well. I drove him to his medical practice but as he was ‘walking wounded’ they wouldn’t see him immediately so I left him there to get back to the job and the other guy.
Tony phoned me to tell me that he had apparently had a stroke and they were taking him to hospital.
At end of work I took Tom back to the HMO and from the road noticed that Tony’s bedroom light was on. I thought I’d just open the door and turn it off but when I did I found Tony on his bed in a very bad state. He’d discharged himself but really wasn’t with it so dialled 999. The paramedic was there within minutes and called an ambulance. The medics took Tony away but told me not to expect him back as he was clearly very ill.
However Tony did come back after a few days. He couldn’t work, wouldn’t register for benefits (or if he did he wasn’t passing any one) and again built up substantial arrears. So I had to serve S21. Tony did a runner owing me a lot of money, his room was a state and on top of that he then tried to claim back his deposit.
I’d suggest that contacting the RBL, working with them and Tony’s old regiment, giving him work and saving the guy’s life is plenty of ‘kinder solution’. After a few of these sort of experiences you tend to get a bit cynical.
My longest tenant lost her job last year and went on to UC. She let us know there was going to be a problem and I gave her a rent holiday. She soon caught up again.
I had a tenant stop paying and stop communicating in 2018 so I took legal action to get my property back. I would never rent to him again, even if he paid me back the £10k in lost rent and property damage he cost me. I don’t trust him any more.
Trust is the important factor. A property is a valuable asset. I would not want to risk one in the hands of someone I don’t trust.
There are many tenants like your longest tenant, who have lost their jobs due to COVID due to no fault of their own. Seeking grant aid is one way to help them – as good tenants are like gold dust and you need to do all you can to keep them.
But even with the bad tenants, if you can get grant aid for them, this will ensure that the rent arrears are less when you eventually evict them or they leave.