Covid-19 Landlord and Tenant Payment Plan

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What's a COVID 19 landlord and tenant payment plan and when do you need one?

Use this template if your tenant has suffered a drop in income, aren't able to pay the rent and you need to agree a payment plan.

Or, if you're a tenant yourself and need some support in rent payment, you could ask your landlord to use this template.

It can be edited to suit the landlord and tenant’s individual circumstances.

After absolute essentials such as food and medicines, the current advice to tenants is to prioritise rent payments.

The government response to the COVID-19 crisis doesn't reduce their liability under the tenancy agreement and they'll still face CCJs, impacted credit ratings and eviction after the initial stay of the court process if they do not co-operate.

The key idea is to accept a reduced payment now and allow the tenant to make up the shortfall over a period of time once their income resumes.

The COVID-19 crisis has created a unique situation where otherwise good tenants may suddenly find themselves in a position where they're unable to pay the rent. The government has introduced some measures to help the situation, but they may change rapidly.

Always check rental guidance for the absolute latest position.

Remember that this is also a stressful situation for your tenants. There will be a difference between some tenants who will have a short-term cashflow problem – for example, those forced to take unpaid leave to look after children and those with a longer-term issue such as the self-employed whose business has failed or those on zero-hours contracts.

Ensure that the tenants are taking steps to obtain what financial assistance they can – such as statutory sick-pay for those self-isolating with symptoms and universal credit.

What else might you need?

For more background on landlords and residential tenancies, including what other options are available to landlords during this difficult time, take a look at our full landlord and tenant suite here.

If you need help or have queries on how best to approach the situation with your tenant, our Speak To An Advisor service is ideally placed to help you.

While we can connect you with some very fine advisers in the UK, and we collaborate with them to provide you with great materials, Farillio itself is not a law firm. We do not directly provide legal advice ourselves. All resources are available for you to use (according to our terms and conditions), but those resources are not legal advice to you and neither are they a substitute for you taking legal advice from a lawyer.