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TODAY'S OTHER NEWS

Council writes to landlords urging "understanding" over arrears

A London council has sent an open letting to its buy to let landlords urging them to show understanding to tenants whose income has been hit by Coronavirus.

As part of the Coronavirus Act 2020 landlords are urged to discuss arrears resolution with tenants in a bid to ensure no-one loses their home as a result of the outbreak.

Now Wandsworth council housing spokesman Councillor Kim Caddy says landlords should “take a positive and understanding approach to tenants who may be struggling through no fault of their own.”

Caddy writes: “Government legislation is very clear and the court system is aligned to preventing the eviction of social and private sector tenants at this time of national emergency. The risks arising from eviction are too great for households, particularly those who may be at higher risk from Coronavirus.

“These are particularly challenging times for those whose work and livelihoods have been affected by the necessary lockdown we are living through. Equally, many private landlords rely on the income they derive from rents to pay the bills. 

“I have three key messages: Firstly, we at the council are focused on ensuring that legislation on evictions during this time is fully observed with support available for those threatened with homelessness.

“Secondly, there are financial and money advice services available supported by the council for those struggling. I would urge residents to use these services to see what benefits they may be entitled to.

“Thirdly, it is always good to talk. It is all too easy to ignore a problem until it is too late. If you are having a problem paying rent speak to an advice service and talk to your landlord to see whether they are willing to offer some flexibility.”

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    Is that same council writing to struggling landlords saying they will be lenient on their demands for empty rates ?

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    It’s time councils stopped charging CT in void periods. A two month period of exemption would allow time to secure a new tenant and to do any refurbishment if required.

  • Paul Barrett

    Cheeky council sods!!
    Pray tell why should LL support feckless tenants!?.
    LL didn't stop tenants building up savings.
    Perhaps Councils should be taking feckless tenants to task over their feckless lifestyles.
    So for a start no tenant should be wasting money on costalot coffees or stupid PCP car plans.
    Next no holidays until at least 6 months of savings have been achieved.

    Nobody is addressing the feckless lifestyle behaviour of tenants.
    So at the first time monthly income fails to arrive feckless tenants are left without any means to manage their normal monthly costs.

    Not once in any MSM have I seen any suggestion that tenants should have savings to cover income loss circumstances.
    It is almost as though society in general presumes that nobody is expected to save but should spend everything they earn leaving no reserve capacity in the event income stops.
    Nobody is condemning the feckless lifestyles of tenants who seem to have no issues in irresponsibly spending all of their income.

    But idiots like these Councils have no issues with their expectations that LL should have reserves to cover for feckless tenants.

    I have no intention of reducing or suspending my rent requirements.
    I am simply not prepared to cover for any feckless tenants of mine.

  • Jon Wilson

    Mmm let me guess your favourite word is......feckless?

    Paul Barrett

    Pray tell what word in the English language would you use for tenants who can't be bothered to resource their domestic financial costs in the event of loss of income.
    To me feckless is the perfect descriptor for such behaviour.

    Of course we all know that if the eviction process could be revised to remove rent defaulting tenants after say 14 days by Police if necessary then magically there would be a massive reduction in feckless tenants.
    Funny that!!

    You seem to consider that feckless tenants are perfectly acceptable.
    That makes you just as feckless as them!


     
  • PossessionFriendUK PossessionFriend

    Ha, ha ;-))) - I think Paul's been unlucky with his tenants ?

  • Paul Barrett

    Can happen to any LL.
    Unfortunately no matter how good a tenant may look on paper it doesn't always work out.
    Many LL will be finding very soon that they will be victims of feckless tenants.

    Personally I don't have any tenants anymore.
    So don't have to concern myself with AST or eviction regulations.

    I only have lodgers who are easy to get rid of.
    I refuse to have any AST anymore.
    This means many reject my offer to treat.
    Their prerogative.
    I currently have all my properties occupied and paying good lodger rent.
    I reside in all my properties at least once per month.
    The lodgers don't mind.
    Indeed they like the idea as they can get me to sort out all the inevitable little chores that arise.
    It is also the only way that they can have inclusive rent.
    All my occupants are enthusiastic as to the way I do things.

    That won't be changing anytime soon.
    Gradually I will be selling up.
    Lodgers aren't able to prevent me selling up so NO issues about selling with vacant possession.

    Eventually I hope to have one house with 4 unrelated lodgers.
    I won't be there much as I will be spending much of my time as a 'guest' elsewhere.
    But of course my house address will be my residence as far as anyone is concerned.
    To maintain residential insurance I will of course be residing in my PPR house once per month.

    No more tenants for me ever again.
    LODGERS from now on!
    Of course that means only unrelated lodgers so no family lodgers.

    That might make things harder for me.
    But when I see the demand for rooms on spareroom I won't have any issues filling my hoped for 4 bed house with unrelated sharers.
    No couples of course as I won't wish to be involved in Mandatory HMO licensing.
    Got about 4 years before I'm all sold up.
    Can't come too soon as far as I am concerned!!

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    One of my properties is a commercial property, tenant has got £25000 grant from council,but still he cannot pay rent, So if I demand rent it's wrong to do so, because tenant is suffering,for god's sake he just got £25K

  • PossessionFriendUK PossessionFriend

    Anil, commence forfeiture immediately, we can help you ( at a fraction of a solicitors fee's )

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    So the council want us to show understanding. Well we have done so on several already, because thats what decent people/ landlords do , right? Doesnt mean we can neccesarily afford it ourselves, just means we are prepared to " go without "an expression which escapes many tenants !and pushes a problem on to someone else
    My gripe here is that the councils show absolutely NO concern for US when we are in a difficult possition of an eviction( the good family fell apart and all went wrong, then stopped paying etc ) they then cause even more costs to us by advising the evicted tenant to stay, meaning more expense of bailifs. Then they charge full council tax whilst the empty trashed property is put back together, having had no income for months etc . common situation.
    Council have a bloody nerve !

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    Maybe the council's stop licencing laws for certain areas to help landlords.Also the government needs to go back to changing tax laws. Possibly reinstating mortgage relief. Help landlords help tenants

  • Paul Barrett

    It must be obvious to all LL that Govt has no intention of assisting LL at all.
    We can all suggest what Govt could do to assist LL.
    It will NEVER happen.
    To Govt this CV19 issue is just a fantastic opportunity for Govt to see its eradication of small LL policy fast tracked by events.
    Govt is licking its lips in anticipation of all that CGT that LL forced to sell will have to pay.

    This is a one off windfall for Govt to acquire the CG on rental property over the past 20 years.
    They certainly aren't going to let such an opportunity slip through their fingers.

    LL are idiots if they believe things will return to the relatively benign days before Feb 2015.

    Govt is out to get small LL make no mistake about it.

    LL need to accept they are beaten and try and exit from leveraged rental properties.

    Govt simply doesn't have a plan for what happens when LL do sell up en masse.

    It doesn't have the intelligence to consider the ramifications.
    Of course across the Irish Sea it is obvious what has happened.
    A disastrous effect on the PRS resulting in a massive reduction in the PRS and now massive homelessness.

    The stupid Irish Govt is only now slowly reversing its stupid policies.
    The lessons are there but the UK Govt refuses to acknowledge the Irish experience.

    The only way LL stand a chance of avoiding being forced totally out of the PRS is to deleverage as much as possible.
    Ideally for all LL to have no leverage at all.
    Only by doing this will LL stand a chance of avoiding being forced out of the PRS.

    LL simply have to accept that Govt doesn't want LL using leverage to invest in the PRS.
    One can have a view on the obvious naivety of such a policy but it is a reality which LL ignore at their peril.
    Currently leveraged LL comprise 50% of the PRS.
    Ideally this would be reduced to zero with a slight increase in unencumbered rental properties.
    CV19 has exposed the precariousness of the BTL model particularly exacerbated by Govt preventing LL from getting rid of rent defaulting tenants no matter the reasons why.
    LL need to wake up the Govt doesn't want you and the State is mightier that any individual LL.

    There is NO cohesive front amongst LL to combat Govt LL eradication policies.
    LL just need to accept that to even survive they need to abandon all leverage.

    Whether LL will accept these realities is another matter!

    It is my considered belief that LL could still have the same net income as at present but from far fewer unencumbered properties.
    BTL LL need to urgently convert to unencumbered LL.
    Govt will still make life very awkward for such unencumbered LL but not to the point where those LL throw in the towel.
    Being unencumbered gives a LL opportunity to resist a rapacious Govt.


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