The existing tenants have built up a sizeable rent arrears since they haven’t paid any rent for over 12 months which they advise is due to pandemic issues. Agreement has been reached with the tenants that the base rent will continue unchanged but they will pay an amount towards the arrears which will also include a fixed sum towards interest each month. Based on the current amount of interest outstanding it will take approximately 4 years to pay the interest and 8 years to pay the rent arrears. Do you have a template agreement for the tenants to sign to confirm their agreement to this. The amount to be paid in respect of arrears will be reviewed and discussed every 3 months
In addition the tenants have asked for a new rental agreement which to set out all terms. This has been set to 6 months and the intention is to use the other documents section to include a pdf of the signed rental arrears agreement so that when the tenants electronically sign the tenancy agreement. Do you agree that this is a good approach to record the intentions of all parties?