23rd Nov2011

Tenants don’t let with ease, as they feel the squeeze.

by admin

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

Category : landlords, tenants, Uncategorized
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08th Sep2011

Dealing with tenants in arrears of rent

by admin

Unless you’re a really hardnosed Landlord, dealing with tenants in arrears in often not an easy position to be in. Often this is the reason a Landlord will appoint a letting agent, that should the situation arise they don’t have to communicate with the tenant on such matters.

What can make the situation extremely difficult is if in the past the tenant has been reliable. The main principle is to communicate and then communicate some more. Often Landlords and Lettings agents alike let the situation get out of hand and then, sadly that is when the acrimony sets in.

If the tenant has truly up to that point been reliable, I would always recommend giving some leeway you might even consider giving them a rent reduction for a couple of months on the basis that they make it up in the future. Truly good tenants are priceless. You need however, to get the proposal in writing and agreed a good payment plan helps.

When it comes to tenants who fail to communicate their situation and just stop paying rent without explaining their situation you have to take a much firmer stance. They should be served with a possession notice (often a section 21 or section  8 ) if this does not amend the situation at least you these in place, and once these have been served the clock is ticking in the landlord favour.
I have always been recognized as both a fair Letting agent and Landlord, however, I have never been an advocate that Landlords should be expected to house tenants free of charge. I often say to the tenants if you go the grocery store and when at the checkout ask to pay in a month’s time for the groceries, I think we will all know the response.

It does not do your tenant any favours if you let the arrears build up, it is better for all concerned parties to take action fast.

If a tenant has money troubles, for some reason the first thing they stop paying is the rent! Few curtail their social activities. Rental arrears unless nipped in the bud will just escalate out of control. If a Landlord you remain silent hoping the tenant will sort it all out, the tenants will just pay their more vocal creditors and allow the arrears to rise.

However nice the tenant is, if they cannot rectify the arrears at the end of the following month, that is when you have to serve notices, even if you explain in a courtesy manner, the reasons for your actions. Because failure to act could mean that if all things turn sour and the arrears level continues not only will you have lost money but also time in getting back possession of the property.

If a landlord contacts the tenants immediately the rent falls into arrears, the tenant will no doubt make more of an effort to pay. Long term this will be to his advantage, as his problems will only be made worse if he is homeless.

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

Category : landlords, tenants, Uncategorized
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19th Jan2011

Why bother to reference tenants?

by admin

As we enter 2011, never have most people felt more squeezed financially than they do now, none of us know quite what the future holds, well especially for this year at least. But we can be sure of some things, costs will certainly rise, salaries with be stagnant, and sadly some people will lose their jobs and income.

In these uncertain times never has it been more important to fully reference your tenants. Ok you can’t guarantee someone is not going to lose their job however much you reference them. But it is a good benchmark in which to start to have a successful tenancy for both you and the tenant.

Finding the right tenant is a fundamental part of a Letting Agencies service. When you have referenced as many people as I have, it’s not all about do they tick the financial boxes, often it is also about do they tick the personality boxes.  If I am managing a property on behalf of a client, I need to get along with the tenant on a day to day basis, if situations arrive during the tenancy. Likewise I feel the same if I am only offering a Tenant Find only service for a Landlord. If you have two parties with conflicting personalities, I have to consider that just because the prospective tenant can pay the rent, will I or the Landlord get along, leading to a stress free tenancy for all concerned parties.

In my opinion, the first impression when you first meet someone, that gut feeling, that feeling in the back of the neck situation, is absolutely critical.

Often when you let out your house, the person who comes and takes the initial instruction will not be the same person who shows the prospective tenants around. Often the corporate companies, operate with one branch manager, a couple of Negotiators and an administrator come receptionist. In a cost cutting exercise most of the property Management and Prospective tenant progress is either out source or dealt with elsewhere.  Well you maybe asking, what has this got to do with referencing?  Well in many cases the reassuring chat you had with the person you first gave the business to, will not have fully communicated all your requirements, and since the negotiators salary is mostly built up out of commission, the person conducting the viewing is primarily interested in one thing only, getting his commission.

As the main principle of Igloolets, I want you to return your business and recommend me to your friends.  So it’s not just about ticking those boxes.

Most agents now outsource referencing, and Igloolets includes itself in that. Why? because the likes of Experian who we use to reference prospective tenants have access to information not available to the public domain.  Often they dig up some information not offered by the tenant.

A good reference should include the following information.

Credit Score/Any adverse credit history

Employers’ reference

Previous Landlord

Personal reference

Affordability calculator/check

Fraud score indicator

Since no one can really predict the next 12-18 months, a Landlord may want to consider taking out a Rental Guarantee Insurance policy, currently our provider who is Endsleigh insurance offer a policy for a small premium of £70 per person per annum.  This type of policy can prevent your tenants’ financial problems becoming yours. This policy also covers legal expenses should the need arise.

However, rental guarantee insurance is not available to tenants that have not been fully referenced, so make sure your agency has done just that.

If you looking for further FREE information or advice on renting out your property in Bristol, I have over 15 years experience in Letting and Property Management in Bristol, letting all various properties from studios to Penthouses. Call me today on  0845 652 1428  or contact me via our site  www.igloolets.com

Category : landlords
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