Landlord has recovered Covid rent holiday without warning

danniwood86

Hello,
posting on behalf of someone else for some advice.
family member was granted a payment holiday on rent through Covid only for 2 months and a payment plan was then put into place to recover the amount which was agreed my all parties -tenant, landlord, agency.

Without warning the full amount owed including this months rent has been recovered today. All the agency have said is that the landlord changed his mind and although originally happy with the agreement has decided he wanted the money back. And that is it.
surely this can’t be ok to do? Are there any rights for the tenant here?
any help/guidance would be appreciated as family
member has now been left with very little for the remainder of this month. 

Many thanks 

onashoestring

It doesn’t sound right .
Do they have the agreed payment plan with all details ( dates/ amounts ) in writing? 
Have they paid the amounts agreed up until now? 

Thrugelmir

How was the money "recovered" ?  Or has the LL simply demanded payment of the arrears in full. 

danniwood86

All payments and rent has been paid as agreed - no late payments. It was agreed verbally with the agency and landlord all agreeing and he’s just all of a sudden changed his mind.
The amount was recovered along with the month rental amount via Direct debit. 

[Deleted User]

If the appropriate notice of the value of the DD wasn't given, they can invoke the DD guarantee with their bank.

danniwood86

Deleted_User said:

If the appropriate notice of the value of the DD wasn't given, they can invoke the DD guarantee with their bank.

Thank you for this I wasn’t aware of it. 

Grumpy_chap

danniwood86 said:

Hello,
posting on behalf of someone else for some advice.
family member was granted a payment holiday on rent through Covid only for 2 months and a payment plan was then put into place to recover the amount which was agreed my all parties -tenant, landlord, agency.

Without warning the full amount owed including this months rent has been recovered today. All the agency have said is that the landlord changed his mind and although originally happy with the agreement has decided he wanted the money back. And that is it.
surely this can’t be ok to do? Are there any rights for the tenant here?
any help/guidance would be appreciated as family
member has now been left with very little for the remainder of this month. 

Many thanks 

At first reading, this sounds appalling and I concur with the comments from others.

Then, thinking a bit more, the final amount claimed may have been the end-closing arrears and just rounding up.  We'd need more information to comment meaningfully.

Many assumptions, ifs, buts and maybes, however here is one scenario that make the LL action less dramatic:

• It is plausible that most COVID-payment holidays were taken in the first 6 months from the first lockdown, so April to September 2020
• OP's family member took 2-month payment holiday, assume August and September 2020
• Assume paid normal rent October 2020
• Then paid the normal rent plus the shortfall of 2 months in addition to be paid over 12-months.  This is from November 2020.  Means rent + 16% for 12 months.
• November 2021 would be the end of that 12-month repayment period and would have bought the repayment period to an end and possibly included a "wrap up" of any excess balance that was outstanding because of rounding in the monthly calculations

That is largely supposition, but more information on the when the rent holiday was taken and the agreed repayment schedule may assist to better understand the situation.

I also say that the LA pleading ignorance and blaming the LL is a bit of creative statement by the LA as I would assume that the DD is administered by the LA and not the LL.  Most LL's are not set up and would not have the banking facilities to operate a DD scheme, particularly if they are using a LA on a "full-management" or "find-and-collect-rent" basis.

It really would be helpful if the OP can provide more detail about the circumstances, how much was taken in the premature ending of the payment plan and that will give members of the forum better basis on which to make recommendations for remedial actions that the tenant can take.

sheramber

What was the repayment plan for recovery of the unpaid rent?

Was anything put in writing?

Amixo3032

Can you explain how she did a payment rental holiday? I am out of work due to Covid lost job , please advise 

norainbows

danniwood86 said:

All payments and rent has been paid as agreed - no late payments. It was agreed verbally with the agency and landlord all agreeing and he’s just all of a sudden changed his mind.
The amount was recovered along with the month rental amount via Direct debit. 

Sadly verbal agreements have no way of being evidenced, so your friend hasn't really a leg to stand on without an agreement in writing. This will be a harsh lesson, but one to take forward with them into future agreements. 

MattMattMattUK

Amixo3032 said:

Can you explain how she did a payment rental holiday? I am out of work due to Covid lost job , please advise 

Some landlords were willing to agree to them, most were not.