Money Moral Dilemma: Should I reduce my furloughed tenant's rent?

Middlestitch

Maybe they can apply for housing benefit if they can't afford the rent? For the sake of harmony I'd offer a modest reduction for a limited period.

Biddy1234

I wish I got £2500 per month!   Tenants have been helped but so far there has been no help for Landlords.  If tenants are given a rent holiday, how are Landlords expected to put food on the table?  Managing on the basic state pension is no fun!

mrpunk50

I've been lucky to have reasonably nice landlords, and now (thank God) I have managed to buy a house. However, this doesn't blind me to the fact that landlords are parasitic vultures. You artificially inflate the housing market in order to keep a monopoly on property and make profit off the fact that others cannot afford to buy. 
Every month, you take more than a quarter of this woman's wages (by your calculations, her wage is £3333/month, and the rent is £750). Then you have the audacity to wonder if she should budget better, so that you can carry on taking your cut.
In an ideal world, the vulture class of private landlords would be extinct.

JazzBick

I'm a landlord with buy to let mortgages. I've requested a mortgage holiday for 3 months on some properties.  All lenders are clearly stating the money/ terms will have to be made up along the line ( so no free pass!). If the reduction in rent is offered to tenants,  then the deficit should also be made up in the future by the tenant. However as alot of landlords know, tenants have no loyalty. They run up arrears and swiftly move on, with no redress. Yet landlords cannot evict in this climate. Heavily weighted against the landlord. I can foresee more repossessions happening. 
While the tenant can afford it, they should pay 100% rent. 

KGraham16

We are landlords of our only property and live in rented accommodation ourselves. We aren't paying less due to this situation, however, we can afford to reduce our rent to our tenants for a short period, and it is something we decided we would do (if needed) before furlough was even an option. 
With furlough it sounds like your tenants are still healthy on their income (that could be far from the reality, I have no idea) so I don't think you should feel mean saying no, but if it is something you can afford to do for a month or two months as a gesture of good will to your tenants then why not? 

jazzert1000

I'm a landlord and currently I am owed 60% of my rent for this month.

I have spoken to my very good tenants and assured them that we will get through this difficult time together, but I have made it clear there will be no rent reduction overall.I am more than happy to work out a financial package that makes sense to both parties in the short term to ease their current cash crisis.I have also made it clear that it has to work for everyone.

Most reasonable people would agree that paying rent is a priority for anyone, it's  an essential.

Sadly I think tenants believe the hype about mortgage holidays and think they are free, but like every holiday the inflated interest rate Bill's will be there to pay in a few months time,

leading to a bigger headache for both parties.

I would insist on full rent perhaps over a longer time period.

Afourteen

2 questions: No1 - is the property mortgaged or do you own it outright? No2 - Is the Husbands pension being reduced?
If the property is mortgaged and you can take a repayment 'holiday' then you could make an allowance but not 25% reduction.
If the husbands pension isn't being reduced then you certainly shouldn't be reducing the rent by 25% for the 'rent holiday'.
in either case you could offer a 10% reduction on the understanding that it is fully repaid in the 20-21 Tax year. I had a similar discussion with my tenants (I own property outright, they are not receiving an income reduction so I'm not granting a rent reduction) and after explaining the 'holiday' granted by the government was intended to be made up once things returned to normal (what ever that maybe) they accepted that my stance was the right one.

manup1963

37.5 hrs @ 8.75 -20%  partner 20 hours at 8.72 and 163 a month Army pension approx 1997 a month before stoppages Rent  £750 they can afford to pay if we can .

manup1963

mrpunk50 said:

I've been lucky to have reasonably nice landlords, and now (thank God) I have managed to buy a house. However, this doesn't blind me to the fact that landlords are parasitic vultures. You artificially inflate the housing market in order to keep a monopoly on property and make profit off the fact that others cannot afford to buy. 
Every month, you take more than a quarter of this woman's wages (by your calculations, her wage is £3333/month, and the rent is £750). Then you have the audacity to wonder if she should budget better, so that you can carry on taking your cut.
In an ideal world, the vulture class of private landlords would be extinct.

mrpunk50 said:

I've been lucky to have reasonably nice landlords, and now (thank God) I have managed to buy a house. However, this doesn't blind me to the fact that landlords are parasitic vultures. You artificially inflate the housing market in order to keep a monopoly on property and make profit off the fact that others cannot afford to buy. 
Every month, you take more than a quarter of this woman's wages (by your calculations, her wage is £3333/month, and the rent is £750). Then you have the audacity to wonder if she should budget better, so that you can carry on taking your cut.
In an ideal world, the vulture class of private landlords would be extinct.
£750 is a normal rent for a 2 bed . She earns enough without the pension he gets . Over 500 more than my partner and I with out the pension . Whats your issue with this landlord . My partner spoke to ours when I was Furloughed and was told you will pay . With out being polite about it .

byrra

The tenants have been rather quick in asking for a full reduction in line with only one of them losing a percentage of their income. I would go back to them ask them how they came to justify their 'request' of 25% reduction before making any offers whatsoever.