OBA Urge Landlords To Help As Much As Can
“I am being contacted several times a day by people who rent homes or business space who are desperate for help as their landlords are not prepared to reduce rent,” OBA Leader Craig Cannonier said.
Mr. Cannonier said, “This is totally unacceptable, especially when you consider two things – the banks have granted a three-month mortgage break and most commercial buildings in Bermuda have been paid for.
“I recently called on landlords to pass on the benefits of the mortgage breaks to tenants. I also asked them, generally, to help as much as they can in these extraordinary times as shops have been forced to close and people are being laid off.
“Today I repeat that request.
“We must work together. Demanding full rent when a business has no revenue is unfair. Demanding full rent when someone has been laid off is not fair.
“Thousands of Bermudians are suffering financially as a result of this pandemic. Now is the time to rally around those who need help.”
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Landlords are not charities. They are not a source of an unauthorised loan either in the form of deferred rent.
Will the insurance companies be giving a deferment in property insurance?
Will all of the maintenance suppliers be giving a deferment in their repair bills?
Will Government be giving a deferment on land tax bills?
Landlords use rent money, if they no longer have a mortgage, to live off of.
Will the grocery stores give landlords a deferment on their food needs?
Will BELCO give a deferment on their bill?
Catch my drift? Younger landlords have mortgages to pay, along with all the other overheads. Older landlords hopefully don’t have a mortgage. They are retired & don’t have a job either. The rent on their investment is their living income.
What do you suggest… Evict everyone who is not allowed to work by the government? Evict businesses who are not allowed to operate? Gonna be a lot of empty buildings and people living in the street. Banks and government need to step up big time, as people who can’t earn are screwed right now. The max $500 a week from the government is a nice gesture but does not go very far. You think you can pay rent and buy food and pay for your health care costs on $500/ week? Good luck with that. Landlords who expect rent from people who are not allowed to work need to give their collective heads a shake, or even better, pull them out of their collective @$$es.
Goes both ways! Tenants who EXPECT a break from their obligations under the lease from landlords when working fully from home and potentially even receiving a housing allowance, is just plain cheeky!
all good points – but there are landlords who can help …
There is no break from Clarien, this is a quote from what was sent out:
“It is important to note however that during the payment deferral period interest on the outstanding balance will be added to the loan principal balance and the term of the loan extended which will increase the total amount of interest paid over the full term of the loan.”
If landlords we to extend the same break then tenants would pay the missed rent at the end of their tenancy and pay the compound interest on the missed rent.
How dare OBA publish such articles. I have read so many articles including feeds on Majs list on facebook and everything points to tenants. How about us landlords!!! We are struggling as is. Yes, banks are now offering differed loans but that does not mean waived. Landlords will still need to pay back the banks for those 3 months that was differed and will cost us more interest and extended years to our mortgage loans! Before asking landlords to give tenants a break, how about you sit down with a landlord whom is still paying bills! We don’t get a break and why should a tenant be allowed? The tenants utilities are not going to stop, they will still need to pay so why should a landlord give them a break! This article is very upsetting! Tenants that are reading such articles are going to expect their rents to be not paid next coming months because they will use this Covvid situation as an excuse, especially those that are still getting paid but will not because they think landlords are getting a break. Question to landlords, what are you going to do if your tenant does not pay rent for the next 3 months? Will you make them pay extra every month to make up the missed rent?
What would you say about a tenant who has been renting a house long enough to pay for the house with never having missed a rent or even been late? Out of work through no fault of their own and zero income? What is fair? What is kind?
I dont think it’s OBA place at all to be telling private people what to do.
How many of their party members are giving a break to their many tenants? Tell us that!
Some landlords are getting a break from banks but many are not – how would OBA know who is and isn’t from these calls they are getting?
Most landlords in Bermuda unlike many wealthy OBA members actually rely fully on the rent to pay the mortgage and likely dont qualify for the bank deferrals it is also their choice to not take up the offer
So I dont think OBA should be encouraging tenants not to pay
*Most landlords in Bermuda unlike many wealthy OBA members actually rely fully on the rent to pay the mortgage*
“most landlords ?” I highly doubt it . Did you know that the banks do not consider possible rental income into their mortgage arrangements ?
In other words the mortgagee has to earn enough money outright to qualify for the loan to buy a house .