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

lawz84

I'm currently furloughed and I'll be getting approximately £1300 next month, the month after I will be on £0 from work as I am a key worker and I will be due back in work so the other half of the workforce can get furloughed for 4 weeks, but I have no childcare cover so having to take unpaid parental leave. My rent is £645 a month and I will not be asking my landlord for a reduction or a holiday even with credit cards to pay off, I have cut out all unnecessary spending to budget for this as I know it will just make it harder to keep on top of as any money "saved" now will still need to be paid at a later date! I have applied for UC to help when I have £0 from work. I think your tenant is being cheeky asking you to take a hit financially, whether you own outright or have a morgage to cover, when they are earning that much at 75% of their wage with husbands pention to be added to it.

jax_bargains

£2,500 a month gross plus whatever pension her husband is bringing in is more than enough to pay £750 a month rent with lots left over. That's more than double what I earn and I comfortably pay rent, so I wouldn't be steamrolled into giving her any discount on that basis, so, no, you're not being mean.  However, if they're good tenants that you don't want to loose due to a sour taste in the mouth, you may wish to try saying that you're willing to reduce their rent to say £650 a month for a fixed period of 3 months, as a goodwill gesture, and see what her response is.  Personally, I think she's just playing you for all she can get.  A 25% discount is £562 a month rent, which sounds a bit low, depending whereabouts in the country you are.

puckishpixie

lawz84 said:

I'm currently furloughed and I'll be getting approximately £1300 next month, the month after I will be on £0 from work as I am a key worker and I will be due back in work so the other half of the workforce can get furloughed for 4 weeks, but I have no childcare cover so having to take unpaid parental leave. My rent is £645 a month and I will not be asking my landlord for a reduction or a holiday even with credit cards to pay off, I have cut out all unnecessary spending to budget for this as I know it will just make it harder to keep on top of as any money "saved" now will still need to be paid at a later date! I have applied for UC to help when I have £0 from work. I think your tenant is being cheeky asking you to take a hit financially, whether you own outright or have a morgage to cover, when they are earning that much at 75% of their wage with husbands pention to be added to it.

If you can't work due to childcare issues of the schools being closed (key worker or not) you should still be entitled to furlough payments according to the guidelines included on the weekly email this week (8th April)

SoozyB

lawz84 said:

I'm currently furloughed and I'll be getting approximately £1300 next month, the month after I will be on £0 from work as I am a key worker and I will be due back in work so the other half of the workforce can get furloughed for 4 weeks, but I have no childcare cover so having to take unpaid parental leave. My rent is £645 a month and I will not be asking my landlord for a reduction or a holiday even with credit cards to pay off, I have cut out all unnecessary spending to budget for this as I know it will just make it harder to keep on top of as any money "saved" now will still need to be paid at a later date! I have applied for UC to help when I have £0 from work. I think your tenant is being cheeky asking you to take a hit financially, whether you own outright or have a morgage to cover, when they are earning that much at 75% of their wage with husbands pention to be added to it.

Is it not the case that you can be furloughed if you have no childcare? I'm sure I read that in the latest newsletter. 

onwards&upwards

The people with the most money are often the stingiest!  

I’d just tell them that you can’t see any affordability issues for the rent and the full amount is still due. 

afis1904

Troiselle said:

There is  lot of support out there  for most people and so as a professional HMO ( house of multiple occupation) landlord myself with numerous mortgages, many bills and 3 children I simply cannot afford to reduce rent or give rent holidays. 

So you say that you - who made the choice to derive most of their income from an investment and are pretty much running a business - can't afford to see your incomings decrease for even one month?

You really shouldn't be a landlord.

FriendlyOgre

£2500 a month!! 
She's taking the proverbial Amber liquid! Absolutely no way should you even consider her request. Get her to provide you with a full statement of means, and a recent bank statement. 
She'll soon disappear back into the woodwork. Then call Rentokil! 

la_86_ci

If they can prove they need the reduction then perhaps you could meet halfway if necessary. Although wage and pension combined it sounds like they are pretty healthy! 

I’m a working single mum for the NHS and with my wage combined with a top up I take home £1900 a month and I’m still paying my £825 rent. 

matron1_2

£2500 is more than my (very experienced) frontline Nurse's salary, and I am managing to pay everything, including the travel costs she will not be currently liable for. This is a very cheeky request. She does realize she will be required to pay it back later (with interest) afterwards doesn't she? Or does she think this is just an excuse for a freebie? She will make lots of savings on the things she cannot do during lockdown. Lots of people earn much less EVERY month, and manage.

had83

My mums tenant also requested this. However, what I advised was to pay a temporary reduced amount and then pay the difference when the tenant has returned to work. So my mum won’t lose out. However I do feel that your tenant is taking the p**** really. I would not personally reduce when they have an income of that level and a pension also. Good luck with what ever you decide