Navigating COVID: A Landlord's Guide

Navigating COVID: A Landlord's Guide

Landlords all over are facing many uncertainties. Coronavirus has affected the economy drastically causing several tenants to lose their jobs. This only means that there will be a number who will struggle with rent payment.

If you're a landlord, you may be wondering or confused about what obligations you must fulfil to your tenants. There are claims for financial support that you may need to know about.

One of the most common questions asked by landlords is: "Can my tenant claim a reduction in rent if they are unable to use the premises?"

Pinsent Masons shares their answer:

"Probably not. Very few leases contain a 'force majeure' clause which could allow either party to say that the obligations in the lease are suspended because of Covid-19."

In an article written last June 4, 2020, it continues:

"In most leases, the obligation to pay the rent is only suspended, or the amount of rent reduced, where there has been "damage" to or "destruction" of the premises by an insured risk or, in some cases, an uninsured risk. Covid-19 itself does not cause physical damage to or destruction of premises, so these provisions are unlikely to be engaged.

Turnover rents in retail leases will be significantly impacted where premises are forced to close.

As a landlord, you may decide to defer, reduce or entirely suspend the rent for a period to avoid tenant insolvency. Any decisions of this type must be documented very carefully.

If a lease was frustrated, as above, it is possible that any advance payments of rent would be repayable."

More questions are answered expertly and in detail, you can read the write-up here:

If you wish to learn more of the implementing guidelines for Landlords, the Ministry of Housing, Communities & Local Government you can read it here:

Coronavirus (COVID-19) Guidance for Landlords and Tenants Non-statutory guidance for landlords and tenants in the private and social rented sectors consist of:

·   The Measure relating to notices seeking possession as amended by the Coronavirus Act 2020.

·   Court action on possession cases during the Coronavirus (COVID-19) outbreak.

·   Health and safety obligations, repairs and inspections in the context of Coronavirus (COVID-19)

Read up and stay safe!

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