Clarity surrounding COVID-19 & Cancelling Contracts

Information for tenants/guarantors wanting to cancel contracts, leave a tenancies, not pay rent as have left property due to the COVID-19 outbreak.

**Please note there are separate guidelines for tenants who would like to request a 3 month payment holiday as outlined last week**

We have received several calls from tenants who have, understandably, left their rental property, possibly with no intention of returning. Others may have left belongings behind, opting to stay with family or friends during the lockdown.

Others may be staying in the property but due to the virus are facing financial hardship.

To be absolutely clear as per correspondence sent last week and also on Monday 23^rd March 2020 – YOU CAN NOT LEAVE YOUR TENANCY EVEN IF YOU HAVE LEFT YOUR RENTAL PROPERTY. There are absolutely no caveats to this unfortunately.

There have been rumours on social media and also in some tabloids suggesting that the Government may stop/cancel new or existing tenancies.

Having spent hours trawling through relevant bills that are due to be discussed in Parliament (which has now closed until 23^rd April 2020), I cannot find any evidence to substantiate these claims (if you are aware of a bill that is contrary to my findings please urgently call Kelly on 029 22331425).

Whilst we as your letting agent and indeed, your landlord, sympathise with you that you may be paying rent for a property that you may or may not be living in, the fact remains that your rent is payable for the duration of your contract.

Some factors worth considering are the following:

• If you are a student, your lectures are still continuing regardless of whether you are distance learning or not. You will also still receive your student loan which is intended for the use of fee’s and living costs. Whilst it is not ideal that you may have moved home, your loan will enable you to pay your rent which is a cost that you would have expected to pay regardless of whether you remained in your rental property or not. For example, when you choose to go home for Easter or Christmas, you may not be using your rental property but you still pay for it.
• If you have moved out of your rental property and in with friends/family, it is unlikely that you are now having to pay a second rent, therefore your outgoings have not increased.
• If you are working and have been or may be temporarily laid off and are entitled to ‘furlough’ payments, this should enable you to pay your rent, as luxuries such as going away, eating out and general entertainment are not taking up your disposable income
• If you are not a student and not entitled to ‘furlough’ payments, we have asked you to contact us so that we can request a payment plan from your landlord. We are committed to helping every person who is facing genuine financial hardship.
• Your gym may have cancelled payments for the time being, however that is because you CAN NOT use a facility you otherwise would be paying for. You CAN use your rental property, it is your decision to choose whether you do this or do not. Should you choose not to use your rental property, that is your decision alone.
• Landlords still have to pay the mortgage, whilst some may be entitled to a mortgage holiday, the money STILL has to be repaid.

In short no one is getting free rent or mortgages from the outbreak.

Whilst the government has not yet released details of a package for those who are self-employed, they have enabled most other sectors of the public to not face excruciating financial hardship, thus enabling people to be able to continue making mortgage and rental payments.

If you do not pay your rent

Should you decide not to pay your rent, as outlined last week, whilst you are currently protected from evictions for three months, which may be the least of your concerns as you may have left, landlords WILL take immediate action against you and your guarantor for non-payment of rent from 18^th June 2020 . You and your guarantor face being served with not only a credit default or judgement against you, which can affect your ability to obtain credit for up to 7 years, but in addition to this, landlords are likely to use a collection agency to remove items from you and your guarantors’ homes to the value of the debt.

Please work with us

The very last thing, we as an agency wants to do is scare monger or threaten you in what is, for all of us, a really scary time. However, you can help matters by simply paying your rent on time (or contacting us if you have a genuine financial concern and would like to set up a payment plan).

We are trying to ease the financial pressure from those who have left and taken their belongings with them by offering to refund deposits where rent has been paid until the end of the tenancy.

Please contact us if you would like to discuss a payment plan or if you have any concerns that are not covered within this information.

We will be issuing further information tomorrow regarding contract that are due to commence after 1^st April 2020 as questions have been asked regarding these also.

Take care.