Landlords: Revise your contractual agreements to avoid bad debt.
The government has announced significant changes to the law affecting the property rental market. Landlords are advised to create new contracts for both the domestic and the commercial sectors which will provide further security for their tenants and themselves.
With the government enforcing social distancing and self-isolation, the population of the UK finds itself in uncharted territories. The coronavirus epidemic is hitting every part of the economy and the property sector is no exception.
The Coronavirus Bill is a piece of emergency legislation affecting the property rental sector for both domestic and commercial properties. It has three main implications for the sector:
- Offering a much longer notice period for the duration of the crisis
- Landlords are to make greater efforts to avoid formal action against tenants who can’t pay their rent
- Banks and other lenders will offer mortgage repayment holidays of up to three months for private landlords, this is on the understanding that landlords will pass on a similar rent holiday to their tenants
This emergency legislation must come as a relief to tenants. However, it is only a short-term fix and after the current emergency is over it could leave many with large debts in the form of rent arrears.
What can landlords do to protect themselves and their tenants?
The advice from the experts at Real Legal is that landlords should revise their contractual agreements with tenants to reflect these extraordinary times.
By drafting a new contract, landlords and tenants can find an agreement which suits both parties. Tenants will be protected from negative consequences in accordance with the government’s latest advice, and landlords will have the certainty that their arrears will not go unpaid. A new contract can set out an agreed way forward which gives tenants an affordable way to catch up on arrears.
From just £99 Real Legal offer a contract writing service which will create a legally binding document that works for all parties and the beauty of it is that they can do it remotely. If you’re self-isolating, or social distancing, you can communicate with Real Legal via video call, or telephone, or whichever method suits you the most.
For more information about Real Legal including how to get in touch for an initial conversation you can find all the contact details on the Real Legal website reallegal.co.uk