If you are a landlord and are worried about what to do if you find yourself in the unfortunate scenario whereby your tenant becomes unable to pay rent due to the pandemic, then you are not alone. It’s currently one of the most frequently asked questions by landlords on Google; and for good reason. With new research undertaken on behalf of the NRLA having revealed the average rent debts still owned by tenants due to the pandemic to have increased by 41% since May (applying to over 430,000 private renters); it’s quite clear that the self-management route is becoming more perilous than ever. And as the Omicron variant creates further industry uncertainties; preparation as a landlord is key.
Who can help me if my tenant becomes unable to pay their rent due to pandemic?
If you are a landlord choosing to self-manage; you do have resources at your disposal that you can use to your advantage. You can contact Shelter, Citizens Advice, The Money Advice Service, or Civil Legal Advice. With resources currently massively overstretched, however, whilst you might achieve a resolution of some sort: there’s absolutely no guarantee. It will also most likely be incredibly time-consuming and stressful.
Mitigating risks as a landlord during the pandemic
Whilst rental voids are, of course, one of the greatest concerns faced by landlords (especially during the current climate), the multitude of risks that self-management presents are far further reaching. Somewhat unbelievably, for example, despite the 170 pieces of legislation associated with lettings, which are in a state of near-constant change; approximately half of all landlords still choose to opt for self-management.
Sally Lawson, former president of ARLA and founder of Agent Rainmaker, having spent many years running landlord masterclasses, made the point that she had never come across an attendant who had been able to name more than 7.
This really does beg the question as to why so many landlords are taking the very real risk of falling prey to the rest. Which, of course, they do. Here at Choices, we have a constant influx of landlords coming to us with terrible problems, arrears, non-compliant tenancies, non-compliant properties, astronomical legal bills, compensation claims and huge fines.
The benefits of using a letting agent
In almost all cases, the benefits of using a letting agent will far outweigh the costs. If, for example you are worried about what to do if your tenant becomes unable to pay rent due to the pandemic, then with our Advanced Rent Option, you can take your guaranteed full market rent, a year in advance, at no extra cost, outside of our standard management fees, even in cases where the tenant pays monthly.
Furthermore, when taken with our rent guarantee:
- Your rent will be covered for the year, even when your tenant doesn’t pay
- Any issues relating to the pandemic will be covered
- You will also be covered for up to £1000+vat of legal costs
- We will go to court on your behalf with assistance of a solicitor
- You won’t have to take out insurance
Find out more about The Advanced Rent Option here; and see what other landlords have to say about it.
Here to help you make the right choices
If you are worried about what to do if your tenant becomes unable to pay rent due to the pandemic, we hope we have provided you with the answers you need. You’ll be in good hands too, as client satisfaction has always been our primary focus. We are one of the most trusted agencies in the UK. Feel free to take a look at our propositions for home sales, lettings and property investment and don’t hesitate to get in touch if you have any concerns!