New Legalities:
The recent Coronavirus Bill has been fast tracked through parliament. The bill is designed to help tenants remain in secure accommodation and reduce the possibility of homelessness during the current pandemic. It established the extension of notice required by the law for evictions, and broadening the pre-action protocols for social landlords to include private landlords.
It also gives private landlords the ability to apply for mortgage holidays from the respective new to let lenders, and it’s offered on the condition the landlord affected will be offering the same payment holiday to his/her tenants.
Both the National Landlords Association and the Residential Landlord Association are petitioning the government to modify the current legislation by way of removing the five week wait for Universal Credit and to shelf upcoming legislation that restrict Mortgage Interest Relief.
Section 8 Notices:
Possession proceedings that come under section 8 of the Housing Act 1988 require a Service of Intention to start proceedings for possession.
The minimum notice period depended on ground for possession relied on - from immediately, with an occupier who has committed an indictable offence, to two months for a former owner-occupier who requires their home back.
During the relevant period, the notice timeframes are extended to three months. The court still has power to do away with notice service or to abridge the time.
Section 21 Notices
The Act extends the minimum notice period under section 21 of the Housing Act 1988 (no fault eviction) from two months to three months.
To get a detailed breakdown of the Coronavirus Bill take a look at the .Gov web page here.
So, what do you do now?
1. Remain cool headed and prepare yourself for any oncoming entanglements over suspension/reduction or early surrender. Have your thoughts prepared mentally and don’t see it as a war you must win at all costs. Factor in that many of your tenants could very well be in a squeeze like you, and like you it’s not their fault. Prepare for negotiation and compromise where you can make it.
2. Are all rent payments up to date so far? Has your tenant(s) earned a break or two or have they always tried to pull a fast one?
3. Everything needs to be written down. EVERYTHING. If you’re agreeing to temporary accommodation you may want to consider issuing a side letter as opposed to a variation on the lease.
4. Keep an eye on your property. As the occupancy may be less right now, issues such as damage or faults could be overlooked. Bear in mind of course giving tenants a 24 hour notice period and always observe any social distancing when visits are being made.
5. What provisions need to be made for the property? Deep cleaning? Viral provisions? Safety notices?
6. Check all your insurance documents. Is there anything at all by way of financial aid that you may be entitled to?
7. Consider a mortgage payment holiday for yourself checking all terms and conditions first. This may give you a few months of much needed oxygen.
8. Always remember that it’s in your interest to resolve disputes amicably. Taking tenants to court is costly, unpleasant and involves hours of work and preparation.
What you shouldn’t do:
1. Don’t jump the gun and kick your tenants to the curb for non or late payments. Certainly not right away. Remember the tenants have plenty of new legislation on their side.
2. Don’t fall back on ‘verbal agreements.’ These are for most of the time not worth the paper they’re not written on. Make sure everything is documented through email, text or good old fashioned snail mail.
3. Don’t be pressurised in to reducing or suspended rent when it’s not required. Be amicable but don’t be a pushover.
In these difficult times it’s imperative you stay ahead of the road bumps. If you’d like to get in touch with us and find out a bit more about how Arch could help your business navigate the Covid maze better call us on 0116 270 6699.
