COVID-19 It's good to talk

c.jermyn • March 26, 2020

Alternatives to possession proceedings for residential landlords 

The team at Woodstock have been busy helping landlords and agents consider their options during this extremely difficult time. 

Now more than ever it is crucial for landlords to consider their options where possession proceedings aren't available or where they might not be the best option for landlord or tenant. 

Our advice to landlords during this period (and tenants) is to communicate and discuss the options with your tenants, particularly where you tenant has otherwise been a good tenant who has or is likely to fall into financial difficulty as a result of COVID-19. 

So what are the options? 

Surrender: It may well benefit both parties to bring the tenancy to an early conclusion. Consider for example a tenant who is keen to move back in with parents and a landlord who could make use of Air BnB to accommodate individuals looking for a place to safely isolate. Or a student house where the students have returned home to live with parents, unlikely to return until the start of the next academic year and a property that the landlord wishes to sell and refurbish. 

A surrender may well suit both parties and avoid the need to litigation. Communicate with your tenant and find out what their position is and the options available to them. 

Rent reductions and settlement agreements: 

Sometimes people just need a lifeline. Landlords should consider if where a tenant is part of government initiatives and therefore receiving 80% of their income. Landlord's should consider agreeing a temporary rent reduction on the same basis.  

If the tenant is completely without income then the landlord could agree a repayment plan to commence once the relevant restriction on their work has been lifted or they have been able to find alternative employment. 

These agreements should be well drafted in line with Government policy which as we know is rapidly advancing. Agreements should also consider the provision of appropriate evidence in support and allow for terms to be amended, all whilst protecting the landlords rights under the tenancy in particular in respect of gaining possession. 

Should I still serve notice? 

We would always recommend that a landlord serves notice alongside efforts to negotiate to protect their position should their well intended efforts fail. Good communication can prevent notices damaging the landlord and tenant relationship and can i fact go a long way to encourage a tenant to communicate. All notices served by Woodstock Property Law are supported by an informative letter setting out the legal position and encouraging communication. 

If you would like assistance with dealing with your tenant and any accrued arrears, options for possession, settlements or surrenders then please contact our team and we will be more than happy to help. 



 

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