Welcome to Home Relief Bulletin Board
Monday 15 June 2020
by the Property Team
Post No. 145
How to renegotiate rents during no evictions period
The Covid-19 rental fallout continues to arise. This week, we are looking at this fallout through the demand from tenants for rent renegotiation.
As demand for rental properties has fallen while supply of the same properties has grown, this has led to the tendentious reduction of rents. This is a situation of any market when supply is too higher than demand. In such case, the price (here rent) is dictated by this market reality.
It is not a surprise if tenants who are moving house or renewing contracts are demanding lower rents. Likewise, those who have lost their jobs or earning capacity are asking for rent renegotiation due to the negative impacts of coronavirus. Low income earners may be looking forward to low rents as well at this difficult time.
Whether it is a landlord/lady or tenant, everybody is feeling the pain or impacts of Covid-19. However, to resolve any dispute or misunderstanding over rent, it is always good to seek advice or open minds for talks. Because of the scenario that landlords/ladies and tenants are in here is of rent that was already been negotiated, then one can look at other options such as rent renegotiation to avoid an impasse.
If there is a zero option, then it could be better to renegotiate rent level since the two sides of the rental process are in unwanted or uncharted territory caused by Covid-19. Renegotiation is important since evictions will not be allowed by the UK Government before the 23 August 2020.
However, how do you renegotiate what you have already negotiated and agreed as a legally binding contract?
In exceptional moments and circumstances like of a global health crisis brought by Covid-19, it is possible to renegotiate and agree exceptional arrangements and terms to adapt and mitigate the life-threatening and destroying impacts like the one caused by Covid-19.
This week, we are going to look at ways of setting up steps to renegotiate rental matters between private landlords/ladies and tenants to avoid or reduce the damaging effects that can be caused by a general tendentious reduction of rents due to the domino effect of coronavirus.
Renegotiation could be the best least option and worth doing since Covid-19 is still there, and so far no medicine or vaccine has been found to cure it. We are in a situation in which the economic landscape is uncertain and the rental sector has to live with Covid-19 effects for unknown period or deadline.
How this week’s e-work will help
This week, we will be e-working with both landlords/ladies and tenants having the issue of rent reduction or review to help them on how to…
√ Prepare for rent renegotiation where it is possible to be done
√ Develop an agreeable rent renegotiation or repayment plan
√ Set up realistic and achievable aims and objectives in a rent renegotiation
√ If necessary, arrange a face-to-face rent renegotiation between the two while maintaining physical and social distancing rules
√ Secure the best possible outcome in rent renegotiation for both parties
What this week’s e-work can achieve
One could hope that at the end of this week’s process, landlords/ladies and renters will…
√ Improve their rental renegotiation skills
√ Avoid a total collapse of a tenancy in the midst of Covid-19
√ Save a mutually agreed tenancy
√ Reduce the loss of rents for landlords/ladies while motivating tenants to improve their source of income to meet current or renegotiated rents
√ Protect tenants’ rental history and credit score
√ Avoid rent strike from tenants’ part
√ Keep communication flowing between the landlords/ladies and tenants over rents
Briefly, this week’s activity is not to recommend renegotiation to either of the parties, but to facilitate rent renegotiation process where there is no any other viable alternative solution.
If you are a landlord/lady and have tenants who are asking for rent reduction or if you are a tenant making a demand for rent reduction, you can e-work with Home Relief on rent reduction issues.
If you are looking for an affordable location and home, Home Relief is the people dealing with affordable homes you could consider in your property searches and enquiries.
For more information about our property service to home buyers and tenants, please go to https://homerelief.co/tenants/
For more information about our property service to home sellers and landlords/ladies, please go to https://homerelief.co/landlord
For properties to rent and let, go to https://homerelief.co/property-search/
For weekly property news and updates, please read our weekly posts.
Thank you for reading this post.
We look forward to receiving your regular visits to Home Relief website and to doing business with you throughout the year.
Home Relief – freelance e-property people dealing with affordable homes