Are your tenants asking you for breathing space?
The Debt Respite Scheme (‘breathing space’) came into effect in May this year, giving tenants a set period of time where they cannot be chased for their rent arrears, or any other debt included in the breathing space.
A ‘standard breathing space’ is available to anyone with problem debt. It gives them legal protections from creditor action for up to 60 days – including pausing most enforcement action and contact from creditors and freezing most interest and charges on their debts.
A ‘mental health crisis breathing space’ is available to someone who is receiving mental health crisis treatment and it has some stronger protections. It lasts as long as their treatment, plus 30 days.
If the tenant has included rent arrears in their breathing space, you must put on hold any action you are taking in relation to the rent arrears. You can still contact the tenant about anything property related, such as inspections and repairs - but you must not under any circumstances discuss the rent arrears.
How do tenants get breathing space?
Tenants can’t just give themselves breathing space – they need to arrange this through a registered debt adviser who is authorised by the Financial Conduct Authority (or an approved mental health professional, where seeking mental health crisis breathing space).
Tenants also need to be aware that breathing space does not mean they can walk away from their debts – it merely gives them time to consider their finances and options. The rent arrears are still payable, and the breathing space does not apply to future rent falling due.
How mediation can help with breathing space
All too often we see landlords and tenants who need an impartial third party to help them.
Ian, a landlord with two months’ rent arrears and a tenant with breathing space, contacted us for help. We weren’t allowed to talk to the tenant about their rent arrears for the reasons given above – but we were able to talk to them about their future plans, when they thought they’d be able to start paying rent again, and what that meant for them if they couldn’t. Long story short, the tenant realised that staying in the property was only going to get them deeper in debt. Ian agreed to waive the rent arrears, and the tenant agreed to leave by the end of the month. Ian took the view that it was a small price to pay to get his property back, compared to what could end up with a lengthy court battle and mounting rent arrears.
Using one of our mediators brings both common sense and expertise to find solutions that work for both landlords and tenants. Disputes can relate to rent arrears or other issues that have arisen during a tenancy. Landlords should consider using mediation to resolve issues with their tenants because:
- It’s quick – we typically reach an agreement in 10 to 15 working days
- It works – tenants work with us once they realise we’re not just on the landlord’s side
- It saves you time, money and stress – we find fast practical solutions without incurring expensive court proceedings. Our charges start from £200 plus VAT for NRLA members.
Call 0203 907 1857 to find out more or start your mediation now.
