The coronavirus pandemic has put an enormous pressure on Landlord and Tenants. The government have introduced new rules to protect tenants during this time.
The National Residential Landlords Association (NRLA) have produced a Pre-Action Plan with nine golden rules that sets out what the parties should do, before considering repossession.
NRLA state it is important to stress that we are in unprecedented times. It is incumbent on tenants and landlords to engage with each other, trying all available avenues to reach an agreement before seeking repossession through the courts.
Here is the Pre-Action Plan with nine golden rules: -
1. Communicate:
If rent cannot be paid in part or full, tenants and landlords should discuss the situation as soon as reasonably possible. It is important for landlords to be flexible and have a frank and open conversation with their tenants at the earliest opportunity, to allow both parties to agree a sensible way forward. It is important that landlords try to understand:
the cause of the arrears;
whether the tenant, their dependants, or other occupiers have been affected by coronavirus and how this has impacted on their ability to pay rent;
the tenant’s general financial situation; and
what ability there is for a payment plan to repay arrears.
2. Establish:
Whether the tenant may be considered vulnerable, such as disabled or a single parent - this guide will help you. If the tenant is in the vulnerable category, local authority housing options teams can also give advice and support.
3. Signpost:
Landlords should point the tenant to organisations that may be able to provide support or advice on benefit entitlement and debt management. Your local council can also offer help and advice, including funding to help pay your rent, called discretionary housing payments (DHP). Other organisations include: ·
Citizens Advice– 0344 411 1444 ·
Shelter - 0808 800 4444
4. Agree:
Seek to agree an affordable payment plan, based on the tenant’s circumstances, where this information has been shared. Guidance for tenants and landlords on how best to manage conversations about arrears is available from the NRLA and other partners here.
5. Be clear:
Landlords should provide clear rent statements for 3-month periods (or 13 week periods, if rent is paid weekly), showing any temporary reductions in rent or deferred payments.
Guidance, including templates for agreeing such reductions, are available from the NRLA.
6. Consent:
Where the tenant is claiming benefits, explore seeking consent for payment of any housing element to the landlord. As a last resort, you can also request deductions to repay arrears - but neither you nor the tenant can choose how much is deducted as they are automatically calculated. This could lead to higher deductions than a tenant feels they can afford. You can find out more by ringing the Universal Credit Helpline – or the tenant can arrange by speaking to their work coach or UC advisor.
More information on alternative payment arrangements can be found here.
