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18-03-2020, 14:15   #1
Samuel T. Cogley
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Rent Freeze - the mechanics of

With a mortgage freeze being suggested, where no doubt the payments would just be tacked on to the end, how could a rent freeze work? Just tacking the payments on to the end won't work and there are other fixed costs each month such as insurance and management fees.

Could some sort of tax break work?
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18-03-2020, 15:39   #2
Gumbo
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Originally Posted by Samuel T. Cogley View Post
With a mortgage freeze being suggested, where no doubt the payments would just be tacked on to the end, how could a rent freeze work? Just tacking the payments on to the end won't work and there are other fixed costs each month such as insurance and management fees.

Could some sort of tax break work?
I was thinking this earlier.
The lost money has to go somewhere.

With regards the mortgage, the banks have said they will spread the payment over the remaining term.

But from the tenant side, do they get 3 months free rent?
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18-03-2020, 15:40   #3
whippet
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I was thinking this earlier.
The lost money has to go somewhere.

With regards the mortgage, the banks have said they will spread the payment over the remaining term.

But from the tenant side, do they get 3 months free rent?
There is nothing free here .. private landlords can’t just not charge rent ... and tenants just can’t expect landlords to pick up the slack when times are tough ....
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18-03-2020, 15:42   #4
Fann Linn
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There is nothing free here .. private landlords can’t just not charge rent ... and tenants just can’t expect landlords to pick up the slack when times are tough ....

Are private landlords getting a freeze on their mortgage payments?
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18-03-2020, 15:43   #5
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There is nothing free here .. private landlords can’t just not charge rent ... and tenants just can’t expect landlords to pick up the slack when times are tough ....
I agree.
It needs to be clear and concise from both sides when entering this agreement.
The tenant needs to be fully aware that the 3 mo this rent will be collected on the other side.
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18-03-2020, 15:44   #6
Zulu
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There is nothing free here .. private landlords can’t just not charge rent ... and tenants just can’t expect landlords to pick up the slack when times are tough ....
Yet this is what plenty think will happen.

I suspect the tenant would need to provide proof that they lost their job, that could then be passed to the bank in terms of pausing mortgages, and again to revenue for a tax deduction. But it wont account for everything and the LL will get a hit no doubt.

Certainly this will not be as easy as some would believe.
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18-03-2020, 15:47   #7
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I was only thinking the same. Im a landlord and the property has a mortgage on it. So I wont be allowing any rent break.The mortgage still has to be paid. Even if I got a break on the mortgage, it will be tagged onto the end for me and ultimately I will take the hit.

I dont see how there could be a break for renters.
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18-03-2020, 15:47   #8
Dav010
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Yet this is what plenty think will happen.

I suspect the tenant would need to provide proof that they lost their job, that could then be passed to the bank in terms of pausing mortgages, and again to revenue for a tax deduction. But it wont account for everything and the LL will get a hit no doubt.

Certainly this will not be as easy as some would believe.
Can you imagine the situation where at the end of the tenancy, the tenant owes the equivalent of 4 months rent, I wonder how many will just walk away. It’s nearly impossible for a LL to get rent arrears as it is.
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18-03-2020, 15:50   #9
listermint
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I was only thinking the same. Im a landlord and the property has a mortgage on it. So I wont be allowing any rent break.The mortgage still has to be paid. Even if I got a break on the mortgage, it will be tagged onto the end for me and ultimately I will take the hit.

I dont see how there could be a break for renters.
How exactly would you be taking the hit if its still rented at the tail end ?

The renters would still be covering only later.


Im not sure you understand the mechanics of this at all.....
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18-03-2020, 15:51   #10
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I was only thinking the same. Im a landlord and the property has a mortgage on it. So I wont be allowing any rent break.The mortgage still has to be paid. Even if I got a break on the mortgage, it will be tagged onto the end for me and ultimately I will take the hit.

I dont see how there could be a break for renters.
You can still rent it on the "other side".
Show a bit of decency will you.
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18-03-2020, 15:54   #11
Dav010
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How exactly would you be taking the hit if its still rented at the tail end ?

The renters would still be covering only later.


Im not sure you understand the mechanics of this at all.....
I think he understands it perfectly well, a pause on mortgage payments does not reduce the amount paid, it just lengthens the term. Tacking it on to the end of a tenancy introduces a huge risk that the tenant will not pay. Eaten bread is soon forgotten.
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18-03-2020, 15:55   #12
Fann Linn
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Judging by some comments here I can see emergency protections being introduced for tenants.
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18-03-2020, 15:55   #13
Dav010
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You can still rent it on the "other side".
Show a bit of decency will you.
What is the “other side”?
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18-03-2020, 15:55   #14
Eric_Noon
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So I wont be allowing any rent break
Best of luck with that. you'll be told you're not getting rent.
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18-03-2020, 16:00   #15
listermint
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I think he understands it perfectly well, a pause on mortgage payments does not reduce the amount paid, it just lengthens the term. Tacking it on to the end of a tenancy introduces a huge risk that the tenant will not pay. Eaten bread is soon forgotten.
Thats exactly what i said, why are you repeating the mechanics of it back to me.

Christ on a bike....


He will still not be paying, his extra month or 3 months will be paid not by him ever, it will still be a tenant now or later
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