Howsy Fully managed
Howsy Protect
HMOs
[UPDATED 12th May]
First and foremost, I hope that you and your loved ones are well. We have all read or used the clichés “unprecented”, “uncertain” and “challenging” times, but the fact remains that none of us have seen anything like this.
As a predominantly online business, we were able to adapt quickly to the government restrictions, so it has largely been business as normal for us apart from the team are almost exclusively remote working.
With the situation changing daily, like everyone, we are monitoring the news closely to see how the government will work to ensure that the nation’s landlords and tenants are protected during this period.
On 29 March, the government published full advice for Landlords and Tenants. On 12 May, this was updated to allow property viewings, prepare properties for renting and move home, effectively restarting the lettings market. Whilst there is no specific mention of social distancing, it goes without saying that it is expected all these activities need to happen whilst maintaining a safe distance from others. There is a lot of reliance on all of us to use our common-sense.
“Our clear plan will enable people to move home safely, covering each aspect of the sales and letting process from viewings to removals…. [and] is based on the latest guidance to ensure the safety and protection of everyone involved. This critical industry can now safely move forward, and those waiting patiently to move can now do so.”
– Robert Jenrick MP, Housing Secretary
Protect yourself
Most importantly, make sure you are keeping up to date with government advice. Washing hands, working from home, social distancing – all things that you’ve seen in the news that are important changes for all of us. Whilst it does appear that restrictions are slowly being loosened, for many of us things won’t change immediately.
Protect others
From 10 May, the edict from the government changed from “Stay at home” to “Stay alert”. Whilst there is more that is open to interpretation, the key messages are:
- Stay at home as much as possible
- Work from home if you can
- Limit contact with other people
- Stay 2 metres (6ft) away from others
- Wash your hands regularly
If you or anyone in your household are showing any symptoms of coronavirus, then you must self-isolate yourself immediately for the protection of those who are most vulnerable. This is incumbent on all of us.
Response times
Our teams are almost exclusively working from home, and whilst this is not unusual for us as a modern technology company, it is exceptional that so many of us are working remotely at the same time. As a result, our response times could be affected. We are trying to prioritise responding to urgent requests or those from the more vulnerable, so please bear with us if we don’t get back to you quickly.
However, we are still open 24/7, and we’re on hand to help both landlords and tenants as usual.
As I mentioned, circumstances are changing, and we’re ensuring we’re keeping updated and adapting quickly. We know that the government is never going to be able to provide details to cover all scenarios. So in absence of specifics, we hope decision making and issue resolution will be done with a mixture of common sense, empathy and compassion for all.
Click here for advice specific to Tenants
Click here for advice specific to Landlords
Please stay safe and look after each other.
Calum Brannan
Founder & CEO, Howsy
Problems paying rent
If your circumstances have changed and you are struggling to pay your rent, please let us know immediately. Don’t wait until after you get into arrears. We will explain the situation to the landlord, and they may give you more time to pay or agree to a repayment plan, although you may be asked to demonstrate that your ability to pay has changed as a result of coronavirus. A repayment plan means you’ll make smaller payments to your landlord over a longer period of time. You’ll still have to pay everything back – but it could be easier than paying the full amount in one go.
You may also be entitled to benefits to help with housing costs if your income has reduced, even if you’re still working. Whilst there are various groups lobbying for ‘rent holidays’ during the coronavirus crisis, there are no details on any plans to introduce this yet.
It is important to note that your total rent will still be due as normal. Landlords may be willing to make arrangements with tenants to delay or reduce rent payments but they are currently under no obligation to do so. Don’t offer to pay more than you can realistically afford – you could make the problem worse if you can’t keep up with your payments.
Evictions
On 18th March, the government announced a ban on evictions.
However, the Coronavirus Act that became law on 26 March, doesn’t actually ban evictions, it just extends the statutory notice period from two months to three for most renters. In effect it means landlords can still serve notice and claim possession at the end of that period. There may be additional emergency legislation, or the legislation could be extended, but that is unknown at the moment.
The change in law only applies to notices served on or after 26 March. However, for existing possession claims there are likely to be significant delays to hearings as court hearings are also suspended.
Moving out of your property
Legally, you can only end a fixed term tenancy early if either your contract (the ‘AST’) has a break clause or you negotiate an early end to the agreement with your landlord. Please let us know if you want to negotiate an early termination – your landlord may be sympathetic to your request to leave, but bear in mind that they will need to find new tenants to cover their costs too. Whilst the government asked mortgage lenders to make provision for mortgage holidays for landlords, they still need to pay that mortgage – it is a deferment, not a cancellation of their mortgage costs.
Conversely, if your tenancy is due to end soon but you’ll like to stay where you are, please contact us so that we can help negotiate an extension with your landlord.
On 12 May, the government announced that there are now no restrictions on moving house, other than ensuring it is done within social distancing guidelines.
Inspections and Repairs
In line with government guidance from 12 May, inspections and repairs can start again. Landlords also have legal responsibilities to carry out gas safety checks, so they have been continuing to be done. If you are self-isolating, then gas safety checks can be delayed, as long as we have documented the reasons why. Please let us know via email as soon as you enter self-isolation, so that we can ensure the safety of you and any maintenance teams are protected during this time.
Please ensure you practice social distancing if any repairs or legal checks are required at your property during this time.
Working from home
If you are now working from home, make sure you maintain good physical and mental health during this period. Although it is second nature for many, it can be surprisingly challenging, particularly for extended periods. The BBC website has some simple tips which will help. We can provide short term work from home furniture packages on a monthly basis in the London area for £30 a month, click here to find out more.
Evictions
On 18th March, the government announced that eviction processes are to be suspended for three months, with no possession proceedings taking place during the crisis. The intention was to give all tenants complete security that if they are unable to work, due to social isolation, lock-down or needing to be at home with children, they are safe in their home and do not have to worry about the risk of an eviction.
However, the Coronavirus Act that became law on 26 March, doesn’t actually ban evictions, it just extends the statutory notice period from two months to three for most renters. In effect it means landlords can still serve notice and claim possession at the end of that period. There may be additional emergency legislation, or the legislation could be extended, but that is unknown at the moment.
The change in law only applies to notices served on or after 26 March. However, for existing possession claims there are likely to be significant delays to hearings as court hearings are currently suspended.
The law applies to all reasons for evictions including, for example anti-social behaviour. If you have an anti-social tenant, then the best course of action is to keep in close telephone and email contact with your tenants and neighbours during this difficult time. Try and diffuse any situation as quickly and calmly as you can remotely, especially if the tenant is going to remain in your property. In this situation, it’s best to show constraint and compromise.
Rent arrears
It is likely that some tenants may find themselves unable to work during this time. The government has effectively promised to cover the wages of many workers, but it is still possible that tenants may find themselves facing difficulties paying rent.
The government has urged landlords and tenants to work closely whilst the situation unfolds, and should it be necessary, establish an affordable repayment plan when the tenant’s circumstances return to normal. It is important to be realistic about how this can be managed. Setting a repayment plan that is too high could lead your tenant into long-term financial difficulties which could result in long-term rental arrears for you – simply extending the problem. Please let us know if you want us to help with any drafting of a rental repayment plan. Similarly, if you do agree a plan directly with a tenant, please inform us.
There are rental guarantee insurances available that still protect you against any missed rent payments, and the government has implemented additional measures – such as mortgage breaks – that can ease your burden.
Protecting your income – rent guarantee insurance
There are a number of rent guarantee insurance products in the market which will cover your rent in the event of rental arrears. Because of the changing situation, the rental protection scheme providers of Howsy’s Rent Guarantee and Guaranteed Rent (as part of our Protect package) have now withdrawn their product to new customers.
You may still be able to find rent guarantee schemes with another provider, but please make sure you check their terms in relation to coronavirus.
You should be aware that any rent guarantee scheme may become redundant as the situation changes. We therefore cannot advise on whether taking up rent guarantee protection is a prudent decision or not.
On 18th March the government announced financial support packages including a three-month mortgage holiday for those whose income was impacted by the virus. From 19th March, mortgage lenders also suspended all possession orders, and will not be starting any new court actions against non-payment of mortgages for 90 days.
For landlords who find themselves with rental income interrupted by tenants who are unable to pay, this could be a real help, allowing a break on either your own personal mortgage, and/or that of your rental property. Be aware that this option may mean your monthly mortgage payment goes up after the payment holiday ends.
You must be up-to-date with mortgage repayments to apply, and be able to prove that your tenant has been directly affected (fallen ill themselves) or indirectly affected (lost their job, financially impacted etc) by the Coronavirus. Contact your individual mortgage provider directly for details of how to implement the break.
It is worth checking to see if you have insurance that will cover your mortgage payments – for example, mortgage payment protection insurance or through your current account – as this may be more cost effective for you.
Renewals, tenant changes and evolving circumstances
On 12 May, government regulations were updated to allow people to move home, as long as they can adhere to social distancing guidelines. If your tenancy was due to end soon, but you and your existing tenant are happy to stay, then please contact us so that we can help negotiate an extension. They may be grateful for the security, and happy to stay in the comfort of a familiar home.
For a tenant wanting to end their tenancy early, while you legally could enforce the terms of the tenancy and claim rent for the remaining period, it may be better to negotiate an end to the tenancy with the tenant or arrange a rent holiday with the tenant. Please show compassion and empathy.
Inspections, repairs and safety checks
In line with updated government guidance, we can restart inspections and non-urgent repairs, as long as it’s possible to adhere to social distancing guidelines.
There is no change to legislation with regards to compliance checks, such as gas and electrical safety – these have always been a requirement. If there is a reason they cannot happen (for example your tenants are self-isolating), then we will document any delays why the checks cannot be carried out and ensure that they are done as soon as reasonably possible when safe to do so. If you arrange these checks yourself, please also document any delays and send to us.
We have continued to fix urgent repairs during this time and this hasn’t changed. If you are arranging any repair work to be done, it is important to stress to any tradespeople and your tenant that government advice surrounding social distancing must always be observed. It is likely that these issues will also take longer than normal to resolve, due to demand and possible difficulty in obtaining parts and labour.
Finding tenants and marketing your property
Even since the initial restrictions since 23rd March, we have seen sustained tenant for future moves. Historically, uncertain economic environments also tends to drive more rentals as people are less likely to buy property. So we expect the lettings market to remain relatively robust overall.
On 12 May, the government lifted restrictions on the lettings market. Effectively immediately, you can now:
- Hold property viewings
- Prepare properties for renting (e.g. taking photos, inventory)
- Move home
Guidelines on social distancing must be adhered to at all times still. If you, your existing tenants or prospective viewers are reluctant to attend a viewing, we can host virtual viewings for you, as well as recording a video walkthrough of your property which we can get on your property advert listing. If you produce your own video, remember that such a video is part of the marketing of the property and falls within consumer protection legislation. It must not contain false images or omit anything that could be a material consideration for a tenant in deciding to let the property. You cannot simply ignore things like broken fixtures, damp or mould in such videos. They must be an honest representation of the property and its facilities.