How private landlords can beat the rent arrears problem

How private landlords can beat the rent arrears problem

16:08 PM, 24th January 2013, About 11 years ago 4

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How to beat rent arrearsRent arrears are every landlords worst nightmare.

One bad tenant can leave you unable to pay your mortgage with prospects of losing your property and possibly bankruptcy. Worse still the court system can take well over 6 months to achieve eviction!

Add to that extortionate lawyers fees and damage to the property, is it any wonder that rent arrears is the biggest fear amongst private landlords?

The rent arrears situation is getting worse.

Arrears are increasing, courts are closing and the process of re-gaining possession of your property is taking longer and longer…

Is it any wonder that “professional rent dodgers” are having a field day?

The outcome of a tenancy is set at the beginning.

Our recommended online letting agents have teamed up with one of the world’s largest insurers to provide a Guaranteed Rent solution. These are just some of the benefits you get;

  • Legal Expense Insurance Cover and Rent Guaranteed for 12 months up to £2,500 pcm and £25,000 in total (with an option to renew each year)
  • Eviction Proceeding costs covered

The insurers are happy to partner with this agent due to their unparalleled tenant find and vetting procedure which provides for low risk letting.  

The bottom line is that if the tenant does not pay – you still get paid 🙂

Given that 10% of tenants are in arrears amounting to thousands of pounds, and you get rent protection and legal cover, you’d expect a hefty premium wouldn’t you?

Not so – because of our recommended letting agents bulk buying power this can be offered for a full year for just £97.

It get’s better though!

The £97 also includes advertising your property on the major property portals including Rightmove, Zoopla, Find a Property and Prime Location. 

The deal even comes with a Money Back Guarantee! If your property is not “Let Agreed” within 30 days you can cancel your instructions and have a full refund.

So, why take the risk of losing your property when you can use this service and get complete peace of mind?

To find out more please complete the form below.

Packaged Letting Product

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Kevin Thomson

12:47 PM, 25th January 2013, About 11 years ago

RGI sounds like a great product. Cheap as well.

However, when I enquired about it complications arose, like they do with most things I suppose. In this case I was looking for RGI for a 5 person student HMO flat. For RGI to take effect I had to credit check each of the tenants plus each of their guarantors. Quite a cost all told.

Credit checking student tenants with no credit history seems a bit ridiculous.

Mark Alexander - Founder of Property118

13:49 PM, 25th January 2013, About 11 years ago

That's a very interesting point you are making Kevin but not an insurmountable problem in the circumstances you have outlined in your example. If you are letting to students you are quite right saying that it's pointless to fully reference them. What you need is parental guarantees. You could choose to only reference one set of parents as all tenants and guarantors are jointly and severally liable for a student house let on a single AST. There are, of course, limitations. If you rent a 10 bed HMO to benefits tenants without guarantors then RGI is not a viable option. On these properties you will typically attract a higher rental yield but you need to offset against that the extra risks you will carry. The line is probably drawn somewhere around shared student houses in terms of the viability of RGI as a viable product.

10:16 AM, 27th February 2013, About 11 years ago

This is one of the reasons that scares me to start a rental apartment business, well starting one as the main source of your income is not really ideal at all. NLA is advising landlords to make an appropriate background checks on their prospective renters. Sometimes despite of the landlords best efforts, payment problems occurs.

15:43 PM, 27th February 2013, About 11 years ago

Don't be scared; go ahead and start your business.
BUT ensure that ALL your tenants have RGI on them or their tenants.
Have appropriate LL insurance and then you can rent with impunity.
If the tenant stops paying the full rent submit the RGI claim and they will be booted out; whilst you get paid the RGI rent
Job DONE!!
This online offering is excellent value and falls into the realm of being a no-brainer.
Would you prefer to suffer massive losses or pay £97 per year for a rolling RGI policy on each tenanted property?
Which do you think will be the cheaper option!?
Oh yes and also the one that will let you sleep soundly in the knowledge that you will ALWAYS receive your AST rent whether the tenant chooses to pay it or NOT!!

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