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Overview of the Rent repayment plan

If your tenant is struggling to pay their rent because of coronavirus (COVID-19) and has asked you for a rent holiday and to delay their rental payments, use this rent repayment plan to create a formal legal agreement for the deferral and repayment of the rent. It will avoid any 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 because of COVID-19 and 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.

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.

The Coronavirus Act 2020 protects most tenants and secure licensees in the private and social rented sectors by putting measures in place that say that where landlords do need to issue notices seeking possession, the notice period must be for six months (except for in certain extreme circumstances, such as extreme rent arrears of at least 6 months). Landlords can choose to give a longer notice period.

At the expiry of the six-month notice, a landlord cannot force a tenant to leave their home without a court order. When the six-month notice period expires, the landlord would still need to take court action if the tenant was unable to move. 

However, please note that in England and Wales, there is a temporary ban on housing repossessions until 31 May 2021, bailiffs cannot serve eviction notice on tenants or carry out evictions, except in the most extreme circumstances (eg anti-social behaviour and extreme rent arrears of at least 6 months).

Ask a lawyer for:

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

  • advice if the tenant does not agree to the repayment terms

  • advice if the tenant does not pay the rent repayments

  • advice if 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.

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