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How to make a Rent repayment plan

If your tenant is struggling to pay their rent due to unforeseeable difficult circumstances, eg the coronavirus (COVID-19) pandemic, they may ask you for a rent holiday and for your permission to delay their rental payments. In Wales, ‘tentants’ are known as ‘contract holders’. For the avoidance of doubt, references to ‘tenants’ also apply to ‘contract holders’ unless otherwise specified.

If you decide to grant their request, use this rent repayment plan to create a formal legal agreement for the deferral and repayment of the rent. You can avoid potential conflict by setting out clear rules for the repayment of the rent. This rent repayment plan outlines the fixed amounts as well as the frequency of instalments in which the rent is to be repaid.

Use this rent repayment plan:

  • when you are a residential landlord

  • when you have been asked by your tenant to defer rental payments and you agree to this deferral 

  • to set out the terms of the rent deferral and repayment

This rent repayment plan covers:

  • when the deferral period starts

  • the duration of the deferral period

  • the instalment amount

  • when instalments are to be paid

  • the account details to which the instalments should be paid

A rent repayment plan creates a formal legal agreement for the repayment of deferred rent payments.

A rent repayment plan will help you and your tenant come to an agreement regarding the deferral of rental payments. It will help avoid any potential conflict by setting out clear rules for the repayment of the deferred rent by the tenant.

Once signed by both the landlord and the tenant, a rent repayment plan becomes a formal legal agreement.

If a landlord and tenant agree on a plan to pay off arrears at a later date, it is important they both stick to this plan, and that tenants talk to their landlord immediately if they are unable to do so. Failure to pay rent may result in eviction.

Local authorities can provide support for tenants to stay in their homes. Tenants could see if they can access new funding from their local councils or the landlord and tenant should review the repayment terms to see if new terms can be agreed.

Ask a lawyer for advice if:

  • the document doesn't meet your needs or cover what you want

  • the tenant does not agree to the repayment terms

  • the tenant does not pay the rent repayments

  • you are based in Scotland

This rent repayment plan is governed by the laws of England and Wales.

Other names for Rent repayment plan

Rent payment plan, Rent relief letter, Rent deferral letter, Rent delay letter, Rent arrears payment plan, Rent holiday agreement.