FIVE steps to managing rent arrears
With some landlords and tenants experiencing rent arrears for the very first time due to the pandemic, the NRLA recently produced guidance, backed by industry, on how landlords and tenants can work together to address arrears that might be building up.
Whether you’re looking for more step by step advice, or you just want to know more about creating an affordable repayment plan, you’re in the right place.
As part of a new monthly “How to” series, we have put together five steps for landlords and tenants on managing rent arrears, based on our industry-backed guidance.
- In relation to rent arrears that may be building as a result of the pandemic, the NRLA is calling for the Government to introduce interest-free hardship loans for tenants, to pay off arrears related to the pandemic. For more information about our campaigning around this, click here.
ONE- Reach out
Get in touch with tenants to ask if they have been affected by coronavirus and provide examples of some of the support you can afford to offer, if they are affected. Equally, if tenants are affected by coronavirus and require support from their landlords, they should contact their landlord to explain their situation. Getting in contact with each other, and at the earliest opportunity is key, so you can both work together.
TWO- Read up on the support available
As a landlord, you may want to consider applying for a mortgage deferment. Your tenants may also qualify for Universal Credit, or the self employed income support scheme. If you’re a landlord in Wales, the Welsh Government also recently announced a Tenant Saver Loan scheme that tenants who have rent arrears built up during the pandemic can apply for to help pay the rent.
THREE –Work together to make an affordable rent repayment plan
Once you’ve taken a look at the support available for you and your tenant, its time to come to an agreement about how you will offer financial support. Perhaps you’re able to defer all or a portion of the rent temporarily until your tenant is in a more financially stable position to be able to afford it? Whatever kind of support you offer, it is important that any payment plan agreed works for both you and your tenant. It is a good idea to base the repayment plan on non-essential spending found in the monthly budget, so the plan can be stuck to. Tenants should check their finances and ideally make a budget.
Interested in reading more? These are just three top tips on managing rent arrears. For more tips on keeping to the payment arrangement and useful video on links to support, sign in below.