The evictions ban was extended earlier this month until 23 August. Great news for renters facing financial hardship but, as we blogged last week, not so good for landlords with no other income to fall back on.
The National Residential Landlords Association is rightly highlighting the problems being faced by landlords whose tenants were already in significant rent arrears before the Coronavirus lockdown. They now have two more months without rent, plus the time it will take to repossess their properties once the ban is lifted. This could be financially devastating for landlords whose rental homes provide the entirety of their income and who have no savings to fall back on. Given that a third of Brits have less than £600 in savings, the outlook for many landlords following the extension of the ban is pretty bleak.
In response the NRLA is calling for:
- a clear statement from the Government urging tenants who can pay their rent to do so;
- support for tenants in the form of a boost to the Local Housing Allowance, developing interest-free hardship loans for tenants;
- providing compensation to landlords who have existing possession orders from the courts but can’t evict tenants until the ban is lifted;
- ensuring the courts process legitimate possession claims quickly once they open again; and
- giving priority to possession cases that that began before the lockdown, to those related to pre-pandemic rent arrears, and cases of tenants committing anti-social behaviour or domestic violence.
Our new automated lettings platform PlanetRent is designed to help landlords reduce the likelihood of rent arrears. Here’s how it works. PlanetRent collects rent from joint tenants individually – which improves the collection rate – and then jointly from other tenants if one should default.
Landlords can turn on Collect my rent by direct debit, allowing PlanetRent to sort out the paperwork and send tenants a direct debit mandate when they e-sign their tenancy agreement. Not only do direct debit payments mean that landlords can collect the rent straight from the tenant’s bank account but they have the advantage of apportioning payments to a regular date. Some tenants may worry that their landlord can take money out of their account whenever they want. But in fact, customers who pay by direct debit are fully protected by the Direct Debit Guarantee.
PlanetRent automates and simplifies rent collection, There’s no subscription and we have a great pricing model. Our new platform is pay-as-you-go, so why not check it out today and help your tenants pay their rent quickly, easily – and on time!
Why not READ our Property Blog too: www.ringleypropertyblog.co.uk