When it comes to international disaster, the UK public historically react amazingly by giving generously. The UK has been at the top of the list of countries that are the most generous when it comes to donating to help in International disaster situations.
The picture is no different when it comes to their own, because of COVID-19 UK landlords have risen to the occasion and been very generous in helping their tenants.
The British Landlord association survey revealed due to COVID-19 the number of residential tenants falling into rent arrears for period 1st of June to 1st of July 2020 stood at 29.7%.
The survey revealed 79.4% of residential landlords agreed to write off a portion of the rent arrears. While 72.1% of commercial landlords agreed to write off some rent arrears.
However, when asked the number of months the rent write off offered by the landlords, commercial landlords were more generous than residential landlords. More commercial landlords were able to tap into the bounce back loans and grants then residential landlords, so commercial landlords were able to pass some of this towards helping their tenants. Not all residential landlords qualified for the grant due to the criteria attached to the government grant.
The willingness for tenants to engage with landlords to deal with rent arrears is very encouraging too. Landlord Advice UK, one of the leading tenant eviction company, has adopted a strategy that is different from the standard norm of serving an eviction notice on defaulting renters.
Mr Sasha Charles, the CEO of Landlord Advice UK, said: “when tenants have rent arrears, the standard response is to serve a section 8 notice. We no longer advise landlord who have rent arrears to serve a section 8 notice without first exploring other options.”
“We now encourage landlords to engage with their tenants. We write to them with a list of benefits and help they can receive so they can continue to service the rent.”
“Within the same correspondence, we encourage the tenant to engage into a payment plan. The payment plan may contain an offer for the portion of the rent to be written off by the landlord.
“90% of all tenants have responded positively, and this removes the threat of eviction. In my opinion, in these cases, the tenant appreciates the landlord’s generosity the landlord and tenant relationship is stronger.”
Today on Sky News the CEO of the British Landlord Association Mr Sajjad Ahmad said: “I am impressed how landlords have reacted to helping their tenants, those landlords who have the financial means to help, it would seem, have helped.”
Source: British Landlords Association
Author: Amanda Goldsmith email@example.com
Date: 21st of September 2020
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