Working with students during COVID-19
c.jermyn • April 15, 2020
Campus is closed but what does that mean for private student accommodation?
We have been contacted by a significant number of landlords and agents trying to deal with university students who no longer require their private rental accommodation with university campuses closed and students being moved online to complete their studies.
There is an alarming amount of misunderstanding by student renters, their parents and guarantors about the continued liability under the terms of the tenancy. Whilst university accommodation providers may have terminated the contracts for the student tenants, where private landlords are concerned, the legal position remains that the student tenants are liable for the payment of rent until the end of the fixed term of the tenancy, whether they remain in occupation or not. The same rule applies to all tenants during the pandemic.
Whilst it is extremely frustrating to students to have to incur the significant cost of accommodation which they no longer have a need for or are unable to occupy safely through no fault of their own, it must be remembered that large numbers of landlords of student accommodation rely on the rent paid as their only source of income, which could disappear overnight if students simply walk away from their obligations.
Communicate, evaluate and negotiate
Whilst the legal position is clear, it is crucial that the parties communicate and see if a resolution can be met which suits both parties.
Ask the following questions:
- Is the property safe to occupy in accordance with social distancing measures?
- Can the landlord obtain a mortgage holiday?
- Can the landlord afford to pay the increased payments to ensure the mortgage is cleared by the end of the term?
- Does the landlord have any other source of income?
- Is the landlord able to re-let the property or make use of Air BnB.
- Are the students still receiving income from their student loan or part-time jobs which allows them to meet their rental liability?
- Are there guarantors in place and are they still receiving an income?
- Can the deposit be released in full to the landlord?
Once the parties have set out their respective positions, then it is open to the parties to negotiate either a full surrender of the tenancy (bringing the contract to an end) or alternatively, a rent reduction, balancing the impact on both parties, neither of whom is to blame for the current situation in which they find themselves.
Each situation is different and it very much depends on the financial resources of of the landlord and tenant. What is key is that the parties communicate. No landlord wants an empty property and rent arrears accruing and no student tenant wants to start their working life with a debt or worse a, CCJ hanging over their heads.
If you need help negotiating with your landlord or tenant then please contact us and we will be happy to offer you some guidance. We also have template documents available to help you properly document any agreement reached, which will protect you in the event the other party defaults.
Finally and most importantly stay safe
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