This week I wasn’t surprised to hear that Landlord Action, a company specialising in tenant eviction, are starting to see the effects that unemployment and increased living costs are having on tenants.
It has been reported that the number of instructions they have received from landlords against defaulting tenants has risen by 11 per-cent year on year, with severe rental arrears increasing by 13 per-cent.
Reports seem to suggest that the impact of this figures are yet to be felt by landlords, which I think is a bizarre statement to say the least! I think that landlords are feeling the pressure, but are less sympathetic and patient when it comes to defaulting tenants, which may explain the rise in instructions.
Tenants are really struggling at the moment, the large deposits required by mortgage lenders have locked many out of purchasing a property, and the high demand for rental properties has pushed rents sky-high. Landlords were once much more understanding about this kind of thing but in the current climate they seem to be taking a harder approach to property management.
Landlord Action made an excellent point earlier this week. They said ‘This rise has also been contributed to by amateur landlords who would rather rush the process in order to avoid void periods in their rental income. Time and time again we reiterate the importance of thorough referencing procedures, but far too many landlords would still rather pre-empt having to evict a bad tenant than pay out or wait for the correct due diligence.”
It is absolutely vital that all landlords thoroughly reference their tenants. At Belvoir Lettings Agency in Sheffield we have been able to keep our rental arrears extremely low compared to the national average and part of this is down to our excellent tenant checks. Before a tenant moves in, Belvoir Sheffield run credit checks, get references from current employers and from past landlords, for all parties who intend to move into the property. In addition we ask for next of kin details and also do a CCJ check.”
We also recommend that all of our landlords then purchase Rent and Legal Protection Insurance as a back up. This covers the landlord against non-paying tenants if they were to lose their jobs unexpectedly or if they were to fall ill, causing them to default. Rent and Legal Protection Insurance is designed to cover the landlord against any possible arrears until vacant possession is obtained, and it also covers any legal expenses as a result of a tenant breaching the tenancy agreement, or unauthorised occupation of the property.
All Belvoir landlords have access to unique insurance packages. These include rent and legal protection insurance, house building insurance and home contents insurance. Belvoir insurance packages are comprehensive and typically cost a third of their nearest competitor – saving you money while ensuring your property is properly protected.
Belvoir Letting Agents Sheffield is the One Stop Specialists for Lettings including Property Management, Tenant Find, Investment and Wealth Management Advice, Fit-outs and Renovations, Furniture Packs and Investment Property Insurances and Mortgages.
