With the Coronavirus Job Retention Scheme having now been terminated, the impact on landlords will be significant. As the furlough scheme ends, research has strongly suggested that the epic withdrawal of financial support will undoubtably result in an increased risk of redundancies, evictions – and tenants in arrears. So, if you are feeling apprehensive as a landlord, then you have every reason to be. Here is what the latest research predicts – and how best you can safeguard yourself as a landlord throughout these turbulent times …
Mounting debt as The Coronavirus Job Retention Scheme ends: NRLA research
A recent report by the NRLA has pointed to warnings from The Bank of England over risks posed to country’s economic recovery by tenants facing extreme financial hardship. Renters are more likely than any other group to have been furloughed – and will inevitably be facing the harsh reality of mounting debt. This, in turn, points heavily towards the likelihood of an increased inability to meet rental payments.
How likely is it that my furloughed tenant will go back to work?
As the Furlough Scheme ends, employers will now be placed in the unenviable position of deciding whether they will be able to welcome their employees back, change their contract, or at worst – make them redundant.
This worst-case scenario seems unfortunately set to be commonplace. With approximately 1,000,000 workers estimated to be on the scheme at the end of September; further recent research has predicted an increase of 150,000 in jobless figures, now that the support has been withdrawn.
What can landlords do to protect their properties after the furlough scheme ends?
Self-managing your property (or properties) in the current climate is quite literally like walking through a minefield. The first answer therefore is to put your asset[s] in the hands of a professional management company. Rent guarantee insurance is definitely better than nothing; but bear in mind that there are significant concerns surrounding this option; and it is often far from stress-free.
An alternative to rent guarantee insurance
If you are worried about your tenants being out of work or not being able to pay their rent as furlough ends; then The Choices landlord rent guarantee offers a unique alternative to rent guarantee insurance.
This exclusive service:
- Guarantees to pay your rent for up to a yearif your tenant doesn’t
- Covers any issues relating to the pandemic
- Covers up to £1000+vat of legal costs
- Goes to court on behalf of the landlord with assistance from a solicitor
- Saves you the hassle of taking out insurance
ARO: The Advanced Rent Option by Choices
The Choices rent guarantee can be taken with The Advanced Rent Option; our first-class property management system that has the additional benefit of allowing you to take a full years’ rent in advance, in one lump sum. Find out more about the full benefits here and calculate what you could get.
Here to help you make the right choices
Choices provide value to both landlords and agents that go above and beyond the conventional approach. Choices are a people’s business – and client satisfaction has always been our primary focus. Feel free to take a look at our propositions for home sales, lettings and property investment and don’t hesitate to get in touch!