Tenants don’t let with ease, as they feel the squeeze.
Residential investment landlords may be benefiting from rent rises but many tenants are now beginning to feel the economic squeeze.
Rent rises over the last 6-10 have been record breaking, despite the economic downturn and instability.
Many renters still unable to enter into the housing market as mortgages for first time buyers are for most still a pipe dream, and many anticipating renting for the foreseeable future. However, this does offer greater flexibility for employment as the market changes into a more flexible environment. It has been suggested that by 2020 the number of people renting could rise to 20 percent.
The forecast for the coming months causes further concern, as we anticipating a cold winter, with many of the major utility companies already announcing higher fuel bill costs. This quite frankly is not good news for tenants who are already struggling, with the costs of running a home already escalating.
For many with stagnant wages and higher costs all round, many tenants are struggling just to make ends meet on a daily basis. This is a recipe for many tenants to fall into arrears.
However, on the flip side of things landlords may well also be struggling, and may well need to income from property to live on, so will be less tolerant of tenants not paying their rent on time.
My advice to both parties is, enter into immediate dialogue as soon as a rent arrears problem arises. Whilst it may well be a pain initially, agree to collect the rent each week or once every two weeks if it is a cash flow problem. Often the Landlord will be much more focused on redressing the issue of rental arrears than the tenant. Both parties need to be honest with each other, and work out a realistic plan. Too allow a tenant to fall into arrears of only one month will make it an even more uphill climb to redress the problem. Rather than undertaking legal proceedings it is always better to see if you can mediate things first.
Albeit, in the final analysis, Whilst it may well appear to be mean, to serve a section 21 notice on your tenant seeking repossession, it is a matter of being cruel to be kind.
If you are considering investing in Bristol or need assistance with your existing portfolio, I have over 15 years’ experience in letting and property management in Bristol, letting properties from studios to penthouses. Feel free to call me today on 0845 652 1428 or contact me at www.igloolets.com
