• Navigating rental arrears as a landlord: The future’s not looking bright

    Share this article

    With rental arrears becoming increasingly prevalent, it’s hardly surprising if you are concerned as a landlord. If you’ve been keeping up with the latest headlines, you’ll probably have heard about the dramatic rise in landlords using debt recovery services. Landlord Action, for example, have recently reported an increase of 180% in landlords applying for their debt recovery service from the previous year. So how do you navigate rental arrears as a landlord?

     

    Rental arrears and tenant relationships: these are turbulent times

    It’s an especially difficult time now to deal with missed payments. With tenants inevitably facing rental arrears due to the current climate; you might be facing more of a moral dilemma than a legal dispute.

    The government of course are keen to keep court proceedings to a minimum. They’ll want you to do everything in your power to resolve the matter yourself. So even if you do want to evict your tenants because they’ve trashed your property (and are not paying either); it’s not going to be a quick process. It will be complex, time consuming and stressful. Hence the epic spike in landlords using debt recovery services.

     

    Rental arrears: We’ll level with you

    With the abolishment of Section 21 on the horizon (among other government plans to support/protect tenants); dealing with rental arrears is going to be an uphill battle. There are also tenants who unfortunately use the restrictions imposed by the government as a means not to pay, when they are able to.

    Government figures suggest that there are 260,000 fewer properties in the PRS sector compared to five years ago. This does beg the question as to whether the increased legislation and strategies geared towards protecting tenants are having the reverse effect.

     

    Dealing with rental arrears: A simple solution for landlords

    Self-managing is a minefield. There are no two ways about it. It isn’t that the DIY approach doesn’t work for some. What we tend to see though is that the truly clued-up landlord tends to be operating as more of an agency (and doing a better job than most). Those landlords are extremely rare though.

    If you are worried about the possibility of experiencing rental arrears, then you are right to be. Honestly, the simplest solution is to hand your properties over to professionals. It’s also worth noting that you pay for what you get (although there are a few exceptions). Paying a little extra to a well-established and trusted agency will save you money in the long run in almost every case.

    Choosing a cheap, inexperienced agent can be as bad as managing your own properties. Both landlords and agents tend to have a bad reputation. Rogue landlords unfairly give landlords a bad reputation with tenants. Rogue agents unfairly give agencies a bad reputation with landlords.

     

    Why choose Choices Estate Agency?

    Having been established since the 80’s, we are one of the most trusted agencies in the UK. There is one big difference with us though. We offer our landlords the option of taking their guaranteed full-market rent, a year in advance, at no extra cost.

    Calculate how much you could get here

    Taken with our rent guarantee, then rental arrears are of no concern to you. Neither are legal disputes. You don’t have to worry about anything.

    • Your rent will be covered for the year, even if the tenant doesn’t pay
    • Any pandemic-related issues are covered
    • You will also be covered for up to £5000 + VAT of legal costs
    • If needed, we go to court on your behalf with assistance of a solicitor
    • You don’t have to take out insurance

     

    Here to help you make the right choices

     If you are unhappy with your current agent or are thinking about having your properties professionally managed, then get in touch here. We will ensure you receive the best service, and that your properties remain fully compliant. If your property is not currently compliant, then we offer a landlord rescue service at our discretion. You’ll get the best ROI too.

    Share this article

Comments

No comment yet. Be the first to comment!

Leave a Reply

Free Online Valuation