Tenants underpaid rent due Furlough

Hello Fellow Landlords,
I wonder if anyone can advise me as I am a first time Landlord and little nervous with my current situation. At the end of last month I checked for rent due in to my acc and noticed my Tenants had under paid their rent by £350.
Obviously I got in touch and alerted them that they had underpaid this month’s rent and obviously its a mistake and to adjust accordingly.
They replied a few hours later apologising and that their company had put them on Furlough.

Obviously I understand the current the situation we are in at the moment, but to pay less without consulting me was a little worrying! No?
Anyway can anyone advise. on how to handle Tenants on Furlough, Anyone
been through a similar situation?


it would have been courteous to let you know. Write back tosympathise with the situation we are ALL going thru and ask how they plan to catch up with the rent?

Colin thanks for your advise on this

no probs… I am nervous sometimes with tenants and I have been a landlord for about 40 years …But we can all still get it wrong or right and nothing beats experience is this field. I have no one on furlough so cant give advice on it. Probably my number one advice would be not to over reach yourself in property Many landlords will have mortgaged up to the hilt on a number of properties one after the other. if their tenant defaults they are in deep trouble… I always saved up and bought, takes longer, peace of mind ,I can afford voids , But rarely have any. Be careful !

Hi Nick

They should have let you know or at least engage in conversation.

My tenants did something similar (only paid 10% at first) and after some lengthy conversations agreed to pay 80% for the next three months with a plan for the arrears - where I agreed to give them a further discount.

Best to speak to them directly and understand their situation to agree a mutual plan that works with both of you.

I think we all have to work together at this difficult time.

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Have you considered taking rental income insurance at this time, may be an option to consider

I doubt anyone is offering new rental insurance policies in these unprecedented times

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Tanks again Colin! Appreciate your expert advice! Invaluable

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If you do accept a reduced payment, make it clear that the rent amount is not reduced, because they are legally obliged to pay the full amount. So part payment may be acceptable to you but you expect them to pay the difference over the next six months or so.

I am a one property 68 year old who relies on monthly rent for income.
My tenant has said she can’t pay (no reason given) and the Guarantor has refused to pay.
Any advice welcome

That’s bad. I thought the guarantor is liable for pay in the case?

Tell the Garrantor you will go to court for the money and costs

Hello Emiritza,
I agree with you and thank s for your input on this scenario.

I have written to them and I’ve asked them to provide written evidence of Furlough from their employer.

I cannot proceed until I have a clear understanding of the furlough which will help me be clear in what the discounted offer will be over the period.

I am in a very similar situation ,last month I knew my
tenant would be struggling and he explained to me his wages hadn’t came through on the expected date.
He underpaid by £100 I texted him and told him he would need to make up the difference no reply.
Then this month no communication he just underpays by £200.
So £300 short in 2 months!
He is on 80% of his wages and I have accommodated him in the past with late payments, he has never let me down previously.
I called him up and asked for an explanation,he said he only had £100 left to live on this month.
I took the opportunity to explain that no discussion from him about his underpayment left me with a sudden financial void to fill and that like him I have mortgage payments car payments etc. to pay.
He gave me some flannel about taking on some freelance work and maybe could get me £100.
I explained to him that communicating with me was the key and to be in touch by Friday to let me know where he was financially.
I also explained the reality of "mortgage holidays " just in case he believed the hype.
Will see what the week brings.

If he underpaid by 100 that is not too bad . He should have let you know first. I suppose 300 in 2 months depends on how much rent he pays… £300 out of say £1500 is not too bad in todays circumstances, but £300 out of say £900 is a fair chunk. I suspect if he had been in touch first you would not feel so bad… P S I am a landlord so know the dificulties

The rent is only £400 a month, so half price for him!
Quite a discount!
I have been doing this for 4 years now and never had any rent losses so not bad so far.
I have 2 flats and the other tenant who I have rent insurance for has paid hers in full!
I might be looking at this all wrong but the bill that keeps a roof over your head would always be my priority, but the fact the tenant knows we can’t actually do anything about it gives them all of the power.

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£200 out of £400 is a lot Ask him to apply for housing help You are so right about priority, I never missed a mortgage payment ever. But some tenants dont know how to cut their cloth

Totally agree! I’ve said I’ll need to see the furlough details and will get back to them. Though they have managed full rent this month :+1:

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I know it’s been a month since my last post but full rent paid this month!
So £300 down so far, who knows where l will be by the end of this.
Might be tight for everyone as the furlough winds down.l am going with the blind optimism option and hoping things will work out.:blush: