The Coronavirus pandemic has caused a lot of hardships over the last 16 months and this has been especially true for landlords and tenants with many landlords not receiving rent on their properties and tenants unable to pay their rent due to furlough or job losses. The government introduced many key pieces of legislation to prevent rented properties from being re-possessed for a prolonged period and also gave guidance on the steps to take before a landlord could start re-possession proceedings. In this article we will look at the steps that need to be taken before considering repossessions.
Government Guidance for Landlords and Tenants
The Government Guidance state that the single most important thing to do as soon as there are any issues around rent arrears is to open up free and frank discussions to allow both parties to understand the issues and work towards resolving the situation. Landlords, before considering repossession orders should fully understand what has caused the arrears; whether anyone involved has been affected by the Coronavirus and the associated restrictions; what the tenant’s current financial situation is and what their ability is to enter into a payment plan. At this stage, every effort should be made to come to a fair and suitable agreement.
The guidance also states that Landlords should take steps to understand if the Tenant is classed as vulnerable such as someone with a disability or a single parent. The local authority housing options team can give help and support in determining whether someone is classed as vulnerable and what assistance there is. Landlords should support their Tenants and, where possible, point them in the direction of organisations who might be able to help them such as the local council and the Citizens Advice Bureau.
Payment Plans and Rent Statements
If there is the possibility of a payment plan, the Government guidance state that the Landlord should not unreasonably refuse to enter into the plan. As part of the planning process and ensuring that any re-payment plan is affordable, the Landlord should provide clear rent statements for 3 month periods (or 13 weeks if rent is paid weekly) which show any reductions, payment deferments or rent waivers.
If the Tenant is receiving benefits, then it is possible for the Landlord to agree with the Tenant that any housing element to the benefit payments be paid directly to the Landlord. This forms part of the alternate payment arrangements process.
Landlords, at all times, should include any guarantors in all conversations relating to any rent arrears and should also take into account that the financial situation of the guarantor might also have changed due to the pandemic.
Mediation as a Resolution Step
If no agreement can be made initially, both parties should try mediation before court action is proposed.
It is important that all steps detailed above are clearly documented as a Landlord will need to be able to prove, with evidence, that they tried everything possible to avoid court action. The court, should proceedings be started, might want to see these before agreeing to hear the case. Tenants will need to be able to prove that they have actively engaged in the process.
If, after all these stages, no agreement has been made, the Landlord should then formally write to the Tenant explaining that re-possession is being sought and the reasons why. If these steps are not followed and documented, then the court could decide to adjourn the case, leading to delays.
The Covid pandemic has made life difficult for many people and, in these unprecedented times, it is important that everything is done to avoid repossessions and evictions. By working through the Government Guidance on pre-action planning, there is a high likelihood that a suitable agreement can be made to avoid eviction and pay back any arrears.
