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Reducing rent in current climate ?

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Author Topic: Reducing rent in current climate ?  (Read 193 times)
Posts: 40

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« on: July 29, 2020, 10:27:57 PM »

Hello everyone .
Need some advice please , we rent out a 2 bedroom house privately to a couple and a young child .
The rent was reduced as an arrangement between us due to the Male tenant being furloughed In March and the wife went on maternity leave shortly after . The rent was 250 less than the Original  full rent .
They are now saying they can not afford the full rent anymore and can we reach an agreement to keep the rent at a reduced price for the long term . I offered them half way and they came back with a measly 25 more than what they are paying now so I am still out of pocket .

He is looking for a new job as he is not sure he will be kept on and she is still on maternity leave .

Any suggestions what to do ?  Contract is due to be renewed in sept .
I am concerned when they both return to work then they will be able to afford the full rent but the contract will be at the lower rent .

I could go through an agent and get in new tenants but tbh the agents would take a percentage and I would be left with not much more anyway . Maybe 100 a month more ?

Can private landlords get rent insurance ?

Many thanks

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Posts: 4065

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« Reply #1 on: July 30, 2020, 10:56:55 AM »

Say - "no, we cannot reduce the rent" - you shouldn't have in the beginning, but offer to let them pay less while they're struggling, which you can then still count as arrears / a debt which you can define a payment plan for. You appear to have been nave in reducing the rent by 250. You could have taken 250 less rent while they're struggling, but have that paid back, at - say - an extra 50 a month, when they're back on track... giving you your income and making them think you did them a kind turn and also having the effort of probably retaining you a captive audience. Everyone wins!

The trouble is that you jumped. The trouble is you've now started negotiations... so you might end up with somewhere between 25 and 250 or just a big heap of trouble. You shouldn't have done this. I'd try to reel it all back in... "either you come back up to [rent minus 100] or I accept the [lower rent plus 25] but the other 225 is considered arrears that you will need to pay" and gauge the reaction to that. I expect it'll be fun. If they agree, get something in writing.

Anyway, on to more pressing topics that I think you'll be interested in... I have these magic beans that I think would suit you very well, do you want to buy some from me? You've got to act quickly, as demand is very high... I take PayPal.
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