In a New Era of Communication - Remember Your Landlords & Tenants

Populations across the world are adjusting to COVID-19, and with social distancing orders in place, finding new ways to communicate not only for businesses, but with family and friends, is paramount. The cultural shift has shown just how many letting agents are now using video conferencing software for the very first time.

As meetings, webinars, training take place in the new place of work, contact with the landlord and tenants remains incredibly important. The landlord needs to have an understanding of the work that is being done during this very difficult time. Whilst offices may be closed, the work still carries on. from collecting rents, liaising with tenants about “rent holidays” or discounted payments, preparing relevant paperwork to address the changes to contracts, navigating repairs and ensuring that any Statutory responsibilities are still dealt with. The workload for letting agents may have significantly increased as dealing with Covid-19 has meant a great deal of change in such a short period of time that no one has ever experienced before. What should letting agents be telling landlords and tenants?

The Rent

Not all landlords are cash rich, in fact many rely on rent as income. Advise the landlord as soon as possible, if a tenant has requested a “rent holiday”, what the proposal “looks” like and how it will impact the landlord moving forward. Putting any payment plan/deferred payment in place IN WRITING is crucial for future reference and may be relied upon if things go wrong.

Notices

Two of the key notices within housing law have changed - it is the notice period that impacts the landlord - from 2 months to 3, for the Form 6A - more commonly referred to as Section 21; and 3 months for the Section 8 notice regardless of the Ground being relied upon. These are major changes that the landlord needs to be aware of.

Court Proceedings

Protections for tenants under the Coronavirus Act 2020, in force from 26 March 2020 which means that where landlords do need to issue notices seeking possession, the notice period must be for three months.To add to this, the Lord Chancellor, issued a Practice Direction to stop possession claims from progressing. The suspension applies for 90 days from 27th March 2020, to all housing possessions proceedings in the rented, leasehold and home ownership sectors.

Access for Maintenance, Repairs, Statutory Responsibilities

Self-Isolation and Social Distancing have had a tremendous impact on the way in which letting agents can / cannot conduct their businesses. The landlords need to have a fundamental understanding of how certain processes need to be dealt with and potentially, may not go ahead.

Viewings, Check Ins & Check Outs

The guidance provided by Government is very clear that only the ESSENTIAL should take place, and nothing more. Landlords must understand that there will be situations that are out of the letting agents remit and cannot take place. Technology has been the default position for many letting agents who use virtual viewings in place of the face-to-face where possible. Check Ins, where possible, are taking place paying particular attention to “Needs Must” - moving in tenants who are key workers, vulnerable or may have health issues and need to self-isolate alone. Advise the landlord what can and cannot be done.

The Future

This not a “forever” situation. As the Government makes announcements on how this situation will evolve, landlords will rely on letting agents to ensure that any changes in the the law are adhered to. As the NRLA lobby Government to delay the introduction of Electrical Safety Regulations on the 1st July 2020, however, if this were not to be the case, letting agents need to support landlords. The transitionary period for the Tenant Fees Act 2019 ends on the 31st May 2020, therefore, landlords, in particular those self managing will need to put their ducks in a row. The consequences of Covid 19 will also have to be dealt with - notices, rental payments, possible court proceedings and any elements the Government believe need to be in place.

Speak to Your Tenants

Tenants are feeling the impact of Covid-19 just like everyone else. When they advise that they are in financial difficulty or have been furloughed, communicate with them; these are challenging times and not all tenants are using the current situation as an excuse not to pay rent.

Access

Tenants need to be informed on what procedures and processes you have in place to deal with everything from rental payments to access and dealing with maintenance & repairs. The key issues for tenants has been self-isolation - ensuring that they are safe, and in turn their families. It is a risk to all if a tenant is contagious, therefore all steps must be taken to ensure that no contractor is put at risk as well.

Can Tenants Stay Put?

Very simply put, “Yes”. Even if notice had been served pre-Covid-19, there is no option available to obtain vacant possession if a tenant is unable to leave the property. Communicate and liaise with the tenant. Be sure that you document any discussions that take place.

One of the simplest ways to communicate with landlords & tenants is a very simple newsletter. Direct them to your Blog and FAQs on your website. Make them aware on a weekly basis that even though the office is temporarily closed, you are still there to provide guidance, support and help.

Make sure that know that in the day to day running of your business, you care. There are so many people that are doing incredible work and silence is not an option in times when so many people fear the unknown.

Susie Crolla - Managing Director.