COVID-19: Support for landlords managing tenants

It's a worrying time for both landlords and tenants right now, but Page Kirk tax specialist Nigel Woodward offers some advice and reassurance.

With the coronavirus crisis causing uncertainty and disruption throughout the global economy, it's unsurprising that many of us are still waiting on payments from employers, clients or tenants. As a landlord, you probably have a range of questions, which we hope to answer here:

What does the government's protection from eviction for tenants mean for landlords?

• The government measures mean that no tenant, whether in social or private accommodation, can be evicted from their home. If you wish to evict a tenant, you must now give tenants three months' notice before you start the court process and take possession.

Will my tenant still pay their rent?

• Tenants are still liable for paying their rent, the same as before the coronavirus pandemic. It is important that you keep in regular communication with tenants who are having financial difficulties, perhaps offering them a payment plan that suits them.

Flagging up help for tenants with financial difficulties

It's also worth considering that not all tenants understand how much help is on offer to them. They might be surprised to hear about government schemes such as the Job Retention Scheme and an increase in Universal Credit and Housing Benefit.

What if commercial tenants have been ordered to close their premises?

• It might be that Public Health England has advised your commercial tenant to close their business as part of the coronavirus lockdown. In most cases, the lease will usually outline that rent is still payable, with rent suspension unlikely to apply to COVID-19. However, this depends on the exact specifics of the lease, so it is crucial that you look at the wording of your rental agreement before communicating with tenants on this topic.

What can I do to help financially troubled tenants?

It is important that your tenants know they still are still required to pay rent

Private tenants – As mentioned previously, it might be useful to help direct your private tenants towards government schemes that have been put in place such as the Job Retention Scheme (which offers to pay 80% of employee and self-employed wages), Increased Housing Benefit and help with Statutory Sick Pay (SSP).

Commercial tenants – With a reduced income for most businesses, it is crucial that tenants are making the most of the schemes and offerings from HMRC such as the Coronavirus Business Interruption Loan Scheme, deferred VAT payments, business rates relief and much more

Advice for Landlords during COVID-19

• Consider asking your lender about what they have put in place for the Coronavirus situation. For example, you may be offered a mortgage holiday if you offer a rent holiday to your tenants.

• Ensure that you are regularly communicating and keeping an up to date log of conversations and updates with your tenant. This will avoid confusion if legal advice is required.

• Contact your insurance provider to see if they offer rent and legal protection. This can help in recovering the costs associated with lost rent or increased service costs as a result of COVID-19.

For more information, we recommend that landlords read through the government advice for landlords and tenants on COVID-19 here.

If you would like to discuss in more detail contact us on 0115 955 5500 or email enquiries@pagekirk.co.uk.