tenant not paying rent

MEM62

Lover_of_Lycra said:

MEM62 said:

Did you have the foresight to take out Landlord's insurance that includes a rent guarantee?  

That wouldn’t necessarily help. Many policies are not paying out for rent arrears incurred during COVID. 

Refusing?  On what basis?  There is no such exclusion in my policy.  

dimbo61

Look out for a new scheme called Debt Respite scheme also called Breathing space !
It comes into force on May 4th and stops possession hearings and local authorities and FCA approved debt advisors can grant " Breathing space " to tenants and home owners in arrears.
Could make it even more difficult to evict your tenants 

peterhjohnson

MEM62 said:

Lover_of_Lycra said:

MEM62 said:

Did you have the foresight to take out Landlord's insurance that includes a rent guarantee?  

That wouldn’t necessarily help. Many policies are not paying out for rent arrears incurred during COVID. 

Refusing?  On what basis?  There is no such exclusion in my policy.  

On the basis that they didn't expect a pandemic! Bless! See https://www.bbc.co.uk/news/business-55661702

[Deleted User]

MEM62 said:

Lover_of_Lycra said:

MEM62 said:

Did you have the foresight to take out Landlord's insurance that includes a rent guarantee?  

That wouldn’t necessarily help. Many policies are not paying out for rent arrears incurred during COVID. 

Refusing?  On what basis?  There is no such exclusion in my policy.  

When does your policy say it will pay out? Once the tenant has been evicted? Except landlords in England and Wales are having to wait 6 months due to notice periods to even get a court date and the courts are backlogged which is putting landlords with non-paying tenants in a catch-22 situation.  

Back in March last year Directline said, “The Government’s commitment is that no tenant will be evicted during a three month period and that landlords are able to apply for a three month payment holiday on their Buy to Let mortgages if necessary. 

During this three-month period we cannot pay any new rent guarantee claims as there is no legal mechanism to allow us to take a claim forward.” 

Many insurers have since exited the rent guarantee market for new customers. 

MEM62

Lover_of_Lycra said:

MEM62 said:

Lover_of_Lycra said:

MEM62 said:

Did you have the foresight to take out Landlord's insurance that includes a rent guarantee?  

That wouldn’t necessarily help. Many policies are not paying out for rent arrears incurred during COVID. 

Refusing?  On what basis?  There is no such exclusion in my policy.  

When does your policy say it will pay out? Once the tenant has been evicted? Except landlords in England and Wales are having to wait 6 months due to notice periods to even get a court date and the courts are backlogged which is putting landlords with non-paying tenants in a catch-22 situation.  

Back in March last year Directline said, “The Government’s commitment is that no tenant will be evicted during a three month period and that landlords are able to apply for a three month payment holiday on their Buy to Let mortgages if necessary. 

During this three-month period we cannot pay any new rent guarantee claims as there is no legal mechanism to allow us to take a claim forward.” 

Many insurers have since exited the rent guarantee market for new customers. 

Eviction is a different topic - although, of course, if the tenants finances can no longer support the rent that will be the ultimate outcome.  The rent guarantee on my policy kicks in once the tenant has missed two payments in row and ends either two months after they have been evicted or when a new tenant signs an AST - whichever is the sooner.     

[Deleted User]

MEM62 said:

Lover_of_Lycra said:

MEM62 said:

Lover_of_Lycra said:

MEM62 said:

Did you have the foresight to take out Landlord's insurance that includes a rent guarantee?  

That wouldn’t necessarily help. Many policies are not paying out for rent arrears incurred during COVID. 

Refusing?  On what basis?  There is no such exclusion in my policy.  

When does your policy say it will pay out? Once the tenant has been evicted? Except landlords in England and Wales are having to wait 6 months due to notice periods to even get a court date and the courts are backlogged which is putting landlords with non-paying tenants in a catch-22 situation.  

Back in March last year Directline said, “The Government’s commitment is that no tenant will be evicted during a three month period and that landlords are able to apply for a three month payment holiday on their Buy to Let mortgages if necessary. 

During this three-month period we cannot pay any new rent guarantee claims as there is no legal mechanism to allow us to take a claim forward.” 

Many insurers have since exited the rent guarantee market for new customers. 

Eviction is a different topic - although, of course, if the tenants finances can no longer support the rent that will be the ultimate outcome.  The rent guarantee on my policy kicks in once the tenant has missed two payments in row and ends either two months after they have been evicted or when a new tenant signs an AST - whichever is the sooner.     

It’s not a different topic if a policy requires the eviction of the tenant in order to pay out. As I said earlier it puts the landlord in a catch-22 situation. 

mrlegend123

Business risk at the end of the day. You cant expect BTL to be risk-free win win....