How to Formalise a Temporary Rent Reduction or Rent Holiday

News & Updates
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Originally published at: https://blog.openrent.co.uk/how-to-formalise-a-temporary-rent-reduction-or-rent-holiday/

Many landlords have been asking how to go about formalising an agreement with their tenant to temporarily lower or suspend the rent. Understandably landlords will want to help out their tenants without accidentally breaching the Tenant Fees Act 2019 or permanently reducing the rent. This post gives some simple tips how to help tenants out…

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Hi there.
As my tenants have been furloughed, I have agreed to reduce the rent until govt lifts the current restrictions. Do I need to make any amendments to our agreement, or let open rent collection know how much should now be collected per month?
Thanks
Ligia

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Following to see if there are any templates available.

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Hi Ligia, if you have agreed the tenants can pay less rent for a temporary period, then you can use the rent pause feauture. This will stop our rent collection system chasing the tenant for the full rent.

Here’s how to activate rent pause.

Sam

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Hi Steve, what you would need in the agreement depends on what you’ve agreed with the tenant, so unortunately, it’s tough to create a template that would be useful to any large number of people.

Sam

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I’ve agreed a rent reduction for three months with my tenant. How to I set the rent reduction with the rent collection service?
Thanks,
George

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Hi George,

If you’ve agreed a temporary rent reduction with your tenant, you can use our new Pause Rent Collection feature to stop any chases being sent to the tenant. This article will explain in a little more detail how to set this up:

We’ll still keep track of any payments the tenants do make which will make it easy to work out any repayment plans later :slight_smile: