In this article, we explain clearly how a moratorium works and how you can protect your position without unnecessary concern.
What is a moratorium?
A moratorium temporarily suspends legal measures, such as eviction. A tenant can ask the court for a postponement, for example because they are receiving debt counselling or working towards a debt restructuring arrangement.
The aim is to prevent someone from losing their home while a solution to their debts is still possible. For you as a landlord, this means that a scheduled eviction cannot temporarily be carried out, even if you have a court order.
In practice, a moratorium is granted only when an eviction is based solely on rent arrears and the tenant is actively pursuing a debt repayment arrangement. Other grounds for eviction, such as nuisance or illegal use of the property, make a moratorium less likely. As it is a temporary measure, it is relatively uncommon.
What happens during a moratorium?
During a moratorium, eviction is temporarily put on hold. As a landlord, you cannot take further enforcement action during this period and unfortunately have to accept this waiting period.
The period usually lasts no more than six months. Fortunately, that does not mean the tenant is exempt from paying rent: the obligation to pay remains in place. If the tenant fails to pay rent during this period, the circumstances may change and the moratorium may be lifted.
How does the judge make a decision?
When considering a moratorium application, the judge examines the circumstances of both tenant and landlord. For the tenant, the judge considers the prospects of successful debt assistance and the efforts the tenant is making. For you as a landlord, relevant factors include payment history, how long the rent has been overdue and the risk of losses caused by a delay.
In principle, a moratorium is intended to allow time to find a solution for the tenant, not to suspend rent payments or the landlord’s rights.
Our approach at Riva Rentals
Depending on the service package you have chosen as a landlord, Riva Rentals takes responsibility for collecting the monthly rent. This gives us direct insight into payments and allows us to act quickly if a month’s rent goes unpaid. Our approach helps us identify and follow up on arrears early. We can often contact the tenant at an early stage, preventing situations from escalating unnecessarily. Should a more complex situation arise, such as an application for a moratorium, a clear, well-documented case file is already in place, providing clarity and peace of mind.
Finally
A moratorium is a temporary and uncommon interruption to legal proceedings. It is useful to understand what it involves, but it is not a reason to worry. With proper preparation and a clear overview of payments, you can feel confident about the income from your property. And remember: we are always happy to discuss your options with you.
Contact
Do you have any questions about what a moratorium could mean for you, or is there anything else we can help you with?
Please get in touch by emailing info@rivarentals.com.