First Indications of Tenant Payment Statistics for April 2020
24.16% of tenants listed as Did Not Pay for April
Early April data shows a deterioration of 3.94% of tenants who paid on time in these first 7 days of this month.
Early Lease Cancellation – Lockdown Style
ARE YOU JEOPARDISING YOUR LANDLORD CLIENT/S ENTITLEMENT TO A CANCELLATION PENALTY DURING LOCKDOWN?
A Landlord’s entitlement to charge a Cancellation Penalty when a Tenant cancels a lease early is dependant on the Landlord using their best endeavours to mitigate their loss, i.e. re-tenant the property.
I do not believe that Lockdown in any way releases them from their obligations to take whatever steps they need to (and are permitted to under the current regulations) in this regard.
n fact, I believe that if they do not take whatever steps they may, they (or their Agent) could jeopardise their entitlement to a cancellation penalty.
Need a Response to Send to Tenants Replying to Letters of Demands sent for April 2020 Rent
“With the somewhat angry, upsetting, and admittedly opportunistic responses we have received to over 300 letters of demand already sent the first week of April via RentDoc, we have decided to make our draft response freely available and which you can send to tenants when they reply to your rental demands.” – Marlon Shevelew
Are Tenants in a Position to Commit to a Rent Arrears Payment or Deferment Agreement?
I am seriously of the opinion that it is very difficult – and may not even make practical sense at this point – to actually document a rent arrears repayment or deferment agreement yet.
At this point you will know the extent of any arrears to date – including specifically arrears as a result of the most recent month-end.
So, why not now negotiate and document a repayment arrangement?
Well, the basics for any agreement would be to know how much is owed, how much the debtor is able to pay each month, when payments will start and the amount and frequency (or dates) of each payment
With the extension of Lockdown and the uncertainty that many people face with respect to income and future prospects I believe more than ever that the time is not yet ripe to document any rent arrears or rent deferment arrangements.
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