Protecting Your Property Investment
“Research by the Residential Landlords Association indicated that 28% of landlords have experienced rent arrears in the last 12 months.”
(Arlo Risby, Blinc Tenant Referencing)
There is no guarantee that a tenant will be able to pay their rent on time, if at all, and what happens if they can afford to pay at the outset, but a change in circumstances means that a sudden drop in income affects their ability to pay?
All too often we hear horror stories relating to rental properties from landlords who have had the unfortunate experience of dealing with tenants who have failed to pay their rent. Tenants not paying rent whether for 1 month or longer is one of the major pitfalls that Landlords have to face, and this is why it is so important that you understand how to protect your property investment.
Here’s an example of what to expect when a tenant fails to pay rent:
This case study is based on a £1000 rental value:
If a tenant were to fall into arrears and stop paying rent completely it could take up to 6 months to evict them from your property. Even with a month’s security deposit to recoup back, this could still leave a substantial deficit of £4500.
Some other important factors to consider in a scenario like this are that your legal costs could be in the thousands, you could be under immense stress due to the time spent trying to resolve the issue and there is also the concern of not knowing if you can even claw back the money that you are owed. You could potentially be expected to pay £2000-3000 worth of legal fee’s and in total £7000-8000, which is certainly not small change for many landlords.
So here’s what you need to do to protect yourself and your investment:
It is recommended that you choose a letting agent who can offer suitable protection in the form of rent guarantee and landlord insurance. This is aimed specifically at giving landlords the security they need when it comes to protecting their rental property and income. Each policy will differ depending on which insurance provider your letting agent is currently using.
At Middleton Estates we use Blinc which is a full tenant referencing service and includes the following benefits:
Rent Guarantee
- Covers £20,000 or 12 months’ rent (whichever is lower)
- No Upper Limit on Monthly Rental Amount
- Nil Excess cover
- 50% of Rent paid for up to 2 months after vacant possession is gained
- Property based cover (transferable between tenancies)
- Current references accepted on renewals from previous providers
- Available for 6 or 12 months
Legal Expenses Section
- £50,000 of cover
- Pays for legal expenses authorised or incurred by the insurer for:
- Eviction Costs
- Rent Recovery
- Property damage caused by tenants exceeding the deposit amount
Full policy details can be obtained via your letting agent.
We also provide landlord insurance and are more than happy to provide you with full details of what the policy covers.
At Middleton Estates we currently manage 43 rental properties with none in arears due to our handling of properties and situations though experience. We know how hard it can be to know who to trust when it comes to putting your property on the rental market, and that is why we operate a clear and transparent service with all our clients. Our lettings managers will take the time to explain how our service works and answer any questions you may have about letting your property with us.
We are 1st for Lettings out of 15 agents in the local area and we promise to take care of your investment. To speak one of our experienced lettings managers about how we can help you, please get in touch with Jamie Howell or Luke Pope on 01273 454878 or email info@middleton-estates.co.uk
Jamie Howell, Lettings Manager