Private Rental Tenants Are Likely to be Most Affected by Coronavirus

Is your Tenant Struggling to Pay their Rent?

The latest news is suggesting that private renters are being hardest hit by the financial impact of the coronavirus. While landlords are likely to be able to take advantage of the mortgage holidays being offered by lenders, tenants are reliant on government furlough schemes - if they qualify.

Difficult and unexpected circumstances are when having a trusted, professional person dealing with your tenants is most valuable. As a landlord, you want to be assured that your managing agent is always in regular communication with your tenants. In the present circumstances, having an established relationship and positive rapport means that a tenant is far more likely to come forward with an issue as soon as there is one. 

Understand that every situation is different. Your tenant may be self-employed, furloughed, have less work or no work at all. Now more than ever, communication with all tenants is vital, taking everything on a case-by-case basis and agreeing a workable payment plan. Have regular check-ins and look for confirmation of new registrations for Universal Credit. Follow up to check on progress updates and any other changes. Consistency and small actionable steps can mean the difference between a tenant burying their head in the sand and working toward a solution together.     

Avoiding a problem only ever makes it worse - if you’re a tenant and if you’re a landlord. 

If you have any concerns about how your tenants may be affected during the current crisis, please reach out and we’ll be happy to help.

Temporary Changes to Government Right to Rent Checks

Advice for landlords carrying out mandatory face-to-face right to rent checks during the coronavirus pandemic

Effective from 30 March, the government has issued temporary changes to the ways in which landlord right to rent checks can be carried out. The checks were introduced in 2014 and obligate landlords or their letting agent to verify a prospective tenant’s right to live in the UK. Documents provided as proof were required previously to be checked in-person.

Due to coronavirus lockdown measures and social distancing:

• checks can now be carried out over video calls

• tenants can send scanned documents or a photo of documents for checks using email or a mobile app, rather than sending originals

• landlords should use the Landlord’s Checking Service if a prospective or existing tenant cannot provide any of the existing documents

Using the submitted copies, it is possible to arrange a video call with your prospective tenant to confirm their original document matches both the digital copy as well as their physical likeness. A note should be made on the digital copy confirming that this adjusted procedure has taken place due to Covid-19 and the date that the video call and check was undertaken.

If you are buying a property that already has tenants, you will need proof that the previous landlord carried out the check. Landlords who do not carry out checks can be fined.

For more information, please refer to the guide below.

Landlord FAQs - Covid-19 Edition

Frequently Asked Questions from Landlords During Lockdown

My new tenants have already signed a contract and are due to move-in shortly. Can this go ahead during lockdown? 

Yes. Removal companies and locksmiths have been deemed essential services and if your tenants have already signed a contract, the relevant start of tenancy arrangements can easily be carried out via remote working and social distancing. Repairs and maintenance, inventories, gas safety certification and professional cleaning can all take place on empty properties after your previous tenants have vacated and in some cases, we are even able to use key boxes or have keys kept securely with the concierge in the building to further simplify face-to-face meetings to exchange keys. We’re always embracing ways to work better - right down to online signature of tenancy agreements - and this means that much of our working is business as usual.    

Does my property still require certification during this time?

Yes. The measures being introduced by the government do not affect the general health and safety requirements for rental properties. Boilers should still be serviced as per normal and gas and electrical safety checks will need to be carried out, regardless of the virus, and following the government’s guidance on safe working practices. 

Are rents going to go down… or up? 

Depending on which day of the week - and who you ask - you’ll get a different answer every time. At Maplewood, we have seen rental prices in Central London continue to be very stable over the past weeks. However, with lower numbers of tenants choosing to move during this period, it may mean that we see a surge in tenants who have been waiting to move house once lockdown is lifted. This could result in a slight drop in rental values now and a small boom as it bounces back, but longer term, we don’t anticipate any major fluctuations in the market at this point.  

The government has published detailed guidance on moving during the coronavirus outbreak. You can read it in full via the link.

Further Details on Current Eviction Ban

Government Guidance Published Regarding Support for Tenants and Landlords

Further to the announcement last week of the suspension of new Section 21 notices being heard by the courts, detailed guidance of the halt to eviction proceedings is now available.

Effective from 26 March 2020, landlords wishing to serve notice to end existing tenancy agreements will have to give 3 months notice. Effectively, this will mean that landlords seeking to commence court proceedings for evictions will not be able to do so until after 30 September.

The guidance goes on to state that effective 27 March 2020, the courts will suspend all ongoing housing possession actions. For example, if you have already served a Section 21 notice to your tenant, this will not progress in the system towards an eviction for at least the next 90 days.

The published guidelines are available to read in detail through the link below.

Government Announces Ban on Evictions

Emergency Legislation Brought in to Support Tenants and Landlords

In light of the current national health crisis, the government announced yesterday that emergency legislation will be brought in to protect tenants in private rented and social housing accommodation in England and Wales from being evicted due to loss of earnings during the crisis. 

This means that no new possession proceedings (Section 21 Notices) will be heard in the courts in this period. This would suggest, however, that if you have already served a possession order through the courts, these proceedings will go ahead. 

The government has also recognised the pressure that the non-payment of rent could place on landlords and as part of the emergency legislation has also confirmed a 3 month mortgage payment holiday. The protection will apply to landlords whose tenants are facing financial difficulties due to the coronavirus.

The full announcement is available via the link below.