Rent Arrears…October 31, 2017 1:56 pm
Rent Arrears is one of those phrases that is bound to send shivers down every landlords spine. No landlord wants that dreaded call from their letting Agent to tell them the tenant hasn’t paid the rent, however knowledge, as they say, is power, and whats most important to a landlord should be knowing and understanding the risks when renting property and taking the correct action to minimise those risk and mitigate any potential loss.
Key 1 – Knowing the Risks – Renting out any property inevitably comes with risks. One of the main ways to reduce that Risk is to ensure you property vet any potential tenant. There is no guarantee but taking up references and carrying out a financial check will provide a good indication of how the applicant handles their affairs. At LET it we insist on the following information from every potential tenant.
- Written reference from previous landlord.
- Confirmation of employment and salary from employers
- 3 months recent bank statements
- 3 months pay slips
- Full credit report within 30 days
- Proof of Residency (valid within 3 months)
- Proof of I.D (Passport or Photo Driving License)
Key 2 – Knowing the correct procedures – this is where a good letting is key. A natural reaction when a tenant falls into arrears is to do something rash. I have lost count the number of times a landlord has suggested visiting the tenant to “have a quiet word” with them, or simply change the locks. This is absolutely the wrong this to do and will most certainly result in the landlord being on the wrong side of court action facing a hefty fine! In contrast it is important to follow good procedure, keep accurate records of calls, texts, emails and letters and issue the correct legal notices. It may take a few months but you will prevail!
Key 3 – Mitigating your loss – There are a number of excellent insurance products on the market to insure landlords against all sorts of risks including Loss of Rent and associated legal costs. LET it provide our own in-house scheme (not an insurance scheme) which will pay the landlords rent and legal costs to remove the tenant if the worst does happen for a as little as £10 + vat per month (terms & conditions apply).
Key 4 – Trust your Agent – Please remember you agent knows how to navigate the pitfalls when things go wrong, it’s our job!