Have tenants kept their end of the bargain, or are they abusing the agreement? And are Landlords being reasonable? Let's examine were we are at using my own data from Ezytrac Property.
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Video Transcription:
Hey guys so welcome to corona virus and property so today I want to talk about are tenants keeping their into the bargain in keeping rent flowing and also either landlords actually keeping their end of the bargain which is you know using the flexibility that were given through the mortgage payment holiday and is everything working out of people
you know is the rent kept flowing and I guess you know that's it is really you know a stress for both parties for tenants and landlords.
I'll start off by saying this it has created a massive amount of work we have over 1,250 properties I'm all around the UK and you know looking at the team that deal with this and that are constantly on the phone and constantly getting emails and the phone calls are going up and down the emails are really just constant but unfortunately right now there's more or emails and phone calls and there is days or hours in the day and so that's really causing some stress for my guys but they're holding all together.
We went into lockdown on the 23rd okay so the first rounds of rents if you like if we just say they all come in at the start of the month because they don't they come in throughout the month but for the most part, there were about 3.1 per cent arrears which that's normal so actually, for the April 1st rents that come in not much change in terms of rents there were a few rents not come in but for the most part, everybody paid their rent which is great news okay and if we can stay like that throughout the whole time fantastic but I think that's more a case of the fact that things weren't really imagine tenants really didn't know what was going on and landlords hadn't had a chance to react and all this sort of stuff so I think what we've seen now is that number go to about 11 per cent of enquiries 11.3% I worked it out at but the reality is that's inquiries say you know people's tenant saying yep I'm having problems I've been made redundant and I'm not going my payment but actually the there hasn't been a huge explosion in tenants not paying rents or tenants and you know I'm not doing that now yes there's a lot of requires and it could get to you know if everyone who said they're having problems doesn't pay their rent in total remember that's 11.2%, 11.3% of inquiries saying that I'm gonna struggle to pay my rent some of those people are happy to pay 80% yeah and defer the other 20 a lot of people come on concern that they've lost their job and they're not sure where and we support them too.
I've got another video on this talking about how you should be going to gov.UK and actually show you step by step so for a tenant jump on there and how all that video yeah because it will show you step by step what you need to do to claim universal credit and all these sort of things do you have access to the government in the UK has been fantastic in what it's done and its approach to things so make sure you use that because for the most part you'll find that the stress you've got about paying your rent actually the government can take that away now if you're self-employed yes it may be a case of hey I'm not gonna be able to patent a 50% and then in June, I get my first payment or you know hopefully sooner I'll get my first payment and then I can look at things.
So I think if we look at that really has taken a lot of the stress and worry away for both tenants and landlords yeah but look there is a lot of cases where you know as an agent we've got to go between the tenant and landlord and try and negotiate a deal and negotiate an outcome that works for both parties because remember not everybody is about it has that mortgage payment you ability and in fact mortgages, for business, the guy in charge of it has already come out and said you know you're a bunch of mugs if you're taking advantage of this you don't need it and you know which okay I get it he's obviously frustrated because it might be affecting his cash flow but you know for me personally I'd be saying well actually if you can take advantage of it upfront even if you don't need it right now get it in place because it may be that your tenant doesn't pay and does communicate with you because this is you know you I'm surely the tenants are watching this aren't these type of tenants but there are a lot of tenants who have basically run up and said I'm leaving the property I out see you later you know I'll leave the keys at reception and literally had that done we've had people have gone I'm from Italy, China, India, Brazil, Singapore like all these different places have basically said I lost my job I'm going home see you later and just left and we've had some who have even left without even telling us where the keys are you know so that's hugely disappointing for the landlord because now we're going to go through an abandoned my procedure and all that sort of stuff and you know it just shouldn't be like that I mean those pricks you know for doing that I mean I get that their situation but just to you know pluck their head in the sand and bugger off you know they could have at least done the right thing but anyway that's a very small minority.
But we are having some of our landlords who have multiple properties who you know one landlord has got five properties yeah that basically the tenants are able to pay you know or able pay in a limited manner so there's a lot of different circumstances and our team at dealing with that and I'm sure this is happening all around the UK.
The interesting thing too is we're getting a lot of landlords coming onto our us because their local landlord hasn't contacted sorry their local agent hasn't contacted them hasn't given them any information hasn't really done anything just basically go on write with furloughing we're out and we'll work it out you know as and when and you know so they don't know where their rents coming that I know I mean these stories are starting to come out about agents who potentially are shut down you know who knows so there's a lot of things like that which are going on in the industry and right now everyone's working really hard that is working it's just unfortunate that a lot of the local agents the smaller agents haven't been able to keep going or haven't been able to continue providing enough information and you know I get it where we spend a lot of time with landlords a lot of time with tenants but for the most part actually both parties and the agents are working really well together and I think that's the government have created a really good environment for everybody to you know make the best of this situation because it is a crappy situation there's no two ways of putting that there's no sugarcoating of this but yeah.
If you're a tenant out there you know good on you guys but I would say the best thing you can do is before you call your agent go on to the government website and identify what you can get you may find that you don't have to actually forgo any rent or forego anything like that you can continue to keep the rent flowing because the government's going to pay you or top that up or you know that universal credit thing fantastic thing but there's also depending on your situation there are other opportunities too and it may just be a case of saying hey I can't do it now but it's five weeks until I get my first payment if not before but even that you know the universal credit you can get an advance on that so look at these sort of things that are available you know there's some fantastic schemes out there I've got another video which talks about you know the various things that are often you can go for you know look at that stuff this is the time now you've been paying your taxes you've been doing all this for stuff this is a time now where the government has stepped up and they have stepped up you know so fantastic to them and good on your Bo John Ritchie show you know you're doing a good job so far even though you know a lot of people are maybe not giving you the credit and actually look at the US it could have gone a lot worse you know and you know unemployment you know 18 per cent, 22 million people made unemployed that's pretty significant that hasn't happened in the UK and I think touchwood a little bit here is that you know we've got through this first phase of the viral now we're to go through the next phase which is how do we reopen.
What's the process of doing that and I think that's the next thing to look at but you know look genuinely guys you know tenants Pat yourselves on the back you know landlords Pat yourselves on the back the system is working pretty well and yes there are the people that aren't doing the right thing and yes there's the landlord's saying they owe me the rent they pay the rent they do this you know and being totally unreasonable but it's such a small proportion of people and it's unfortunate that things are going to make the news are those you know people that aren't being reasonable by far the majority people are being really reasonable really generous really understanding and it's working you know it is working
from our perspective and looking at it across twelve hundred fifty properties or twelve hundred seventy-four properties or whatever it is you know it works pretty well it looks pretty good so you know to keep it up and you know if you are struggling the best thing to do is speak to the government then communicate with your agent landlord depending on who you're working for.
Get that communication happening yeah and if you want to you know if you're working with an agent, by all means, jump on my site because I've got lots of information coming out for tenants and for landlords you know whether you're working for us or not it's on you to know my youtube channel all the time keeping things up-to-date keeping things real you know I mean this is there's no BS about it you know this is what's happening on the coalface for a lot of people and you know there is a lot of agencies that have closed down that don't have the ability to keep going and keep providing the services that perhaps we can because we know we'll get a sizable business now but look guys keep it up and yes they safe stay healthy and stay at home and will laugh see you again tomorrow see you later bye
