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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