# Tenant can't pay rent, AIB mortgage



## Flavour (24 Mar 2020)

We have a rental property in Dublin, where the tenant has just rang up to say they can't pay the rent, or most of the rent (they are self-employed).
We have the mortgage with AIB, and thinking about asking for a moratorium for 3 months. The issue is that it is a PDH (Primary Dwelling Home) mortgage - we never told them we had to move out and are renting it out. 

I can't give the reason for the moratorium that the tenant won't pay, as I don't want to run the risk of being transferred to Buy-to-Let rate (that I couldn't afford).

Has anybody experience of the detail of questions and documentation the bank push for to get the moratorium? Somebody told me that they are approving them without too much oversight. Or would appreciate any other ideas of how to proceed?


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## Stephen Brennan (25 Mar 2020)

Rent is a contractual obligation, it must be paid. If your tenant has lost their job direct them to the Department of Social Protection website to apply for rent supplement. Complete any forms for them as quickly as possible. They can also apply for the COVID-19 Pandemic Unemployment Payment and receive €350 per week. There is no need for you to approach your bank. The media and some in government gave the impression that the tenants are entitled to stay rent-free as the landlord can just approach the bank for a payment break. If there is a delay in processing the tenants rent supplement forms, you may have to agree on a payment plan with the tenant if they are a bit short until they receive the payment but they still have to pay the rent back.

I also heard on the Joe Duffy show that some banks aren't very accommodating when customers have looked for moratoriums.


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## Leo (25 Mar 2020)

Stephen Brennan said:


> The media and some in government gave the impression that the tenants are entitled to stay rent-free as the landlord can just approach the bank for a payment break.



I think the official channels have been clear enough that while the emergency measures will introduce a moratorium on evictions, rent is still due.


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## QC_Mimi (25 Mar 2020)

Flavour said:


> We have a rental property in Dublin, where the tenant has just rang up to say they can't pay the rent, or most of the rent (they are self-employed).
> We have the mortgage with AIB, and thinking about asking for a moratorium for 3 months. The issue is that it is a PDH (Primary Dwelling Home) mortgage - we never told them we had to move out and are renting it out.



I hope you are registered with RTB at least!

I've a 4 bed rental property rented out to five people, two of them are not affected (retail workers) but the others are.  They've paid the rent for this month but were worried about paying April's rent, as their social welfare supports may not be in place.   I am loath to approach the bank for a mortgage break for various reasons...  I've offered them all one month rent free (April) at no repercussions but they will be expected to meet the rent each month going forward after this.  Which won't be too difficult if they are getting €350pw!


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## Stephen Brennan (25 Mar 2020)

Leo said:


> I think the official channels have been clear enough that while the emergency measures will introduce a moratorium on evictions, rent is still due.


They can't be that clear. People on the other thread you are replying to seem confused by it.




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						Landlords and temporary Rent reduction
					

My long term tenant has asked me to drop the rent down as she cant go in to work over fear of contracting the virus. Says she is on emergency annual leave? While I want to help if this is genuine, she still has outstanding rent arrears from being out of work previously. Can I ask her for...



					www.askaboutmoney.com


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## Leo (25 Mar 2020)

Stephen Brennan said:


> They can't be that clear. People on the other thread you are replying to seem confused by it.
> 
> 
> 
> ...



There's just one question on it there. Any of the official channels have been pretty clear, I've only read two media reports, but neither of them hinted at anything more than a rent freeze. You have links to the ones you saw that suggested otherwise?


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## Stephen Brennan (25 Mar 2020)

Leo said:


> There's just one question on it there. Any of the official channels have been pretty clear, I've only read two media reports, but neither of them hinted at anything more than a rent freeze. You have links to the ones you saw that suggested otherwise?


My point isn't to do with rent freezes, that was merely an example that not everyone is clear with the information because of misleading media reports. The link below is an interview with Paschal Donohoe on Six One News last week.  Paschal Donohoe made it perfectly clear that the way he wants it to work is that in the event a tenant informs the landlord they can't pay the rent (because of CV19), the landlord should go to the bank to avail of the 3-month payment break. At no time did he say that support measures are already in place for tenants who can't pay their rent (Rent supplement and HAP). Caitríona Perry was also implying that this was a good deal for the landlord and asks whether the landlord will pass it on to the tenant. I didn't hear her ask 1) how can we be sure tenants won't abuse the system too, or 2) why would the landlord want to avail of this when interest will be accruing on the loan, or 3) rent supplement is already in place for tenants in difficulty. It was only days later after the Irish Property Owners Association took exception to this and other reports that Pascal and Eoghan Murphy started mentioning rent supplement for tenants, measures that are already in place.
Fast forward to 24 minutes, 17 seconds.




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						Banks announce measures for customers and businesses impacted by Covid-19
					





					www.rte.ie


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## Leo (25 Mar 2020)

Stephen Brennan said:


> The link below is an interview with Paschal Donohoe on Six One News last week.



Last week??? So a week before the emergency measures for the rental sector were introduced?



Stephen Brennan said:


> At no time did he say that support measures are already in place for tenants who can't pay their rent (Rent supplement and HAP).



The questioning was very specific to the meeting with the 5 main mortgage lenders held earlier that day and the measures being brought in in relation to payment breaks. There were no changes to support measures for tenants, so no news there.  

Again, what media outlet or government spokesperson has set an expectation that 'the tenants are entitled to stay rent-free'?


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## Stephen Brennan (25 Mar 2020)

Leo said:


> Last week??? So a week before the emergency measures for the rental sector were introduced?
> The questioning was very specific to the meeting with the 5 main mortgage lenders held earlier that day and the measures being brought in in relation to payment breaks. There were no changes to support measures for tenants, so no news there.
> Again, what media outlet or government spokesperson has set an expectation that 'the tenants are entitled to stay rent-free'?


The questioning was very specific when Caitríona started talking about landlords and tenants too.
Again, my point isn't to do with rent-free, that was merely an example (from the other thread you replied to) that not everyone is clear with the information - landlords or tenants. It doesn't help when the Minister for Finance omits the fact that rent supplement is available when answering a question about tenants who lose their job.


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## Leo (25 Mar 2020)

Stephen Brennan said:


> It doesn't help when the Minister for Finance omits the fact that rent supplement is available when answering a question about tenants who lose their job.



In fairness though, he can't be expected to go through all the existing measures to assist those who need it in a couple of minutes live on TV. If he had others would have accused him of not answering the questions asked.


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