How to avoid rent arrears becoming a problem....

Rent arrears are among a landlord’s worst nightmares. A tenant defaulting on rent may put pressure on making mortgage repayments. It also can cause great worry and stress.

We are living in some very testing times. It is almost impossible to switch off from the cost-of-living crisis that the country is face right now. Mortgage interest rates have risen as has the costs of the very basics – food, heating and energy.

This has had a impact on tenant finances too. Average rents have risen and their affordability has become more stretched.

In these difficult times ensuring you have the right tenant is crucial. You can do this with proper referencing checks which are now more important that ever.

The checks will verify affordability, previous landlord reference, and credit score. If your prospective tenant meets these then usually, they’ll get the green light for them to move in and off you go. Despite this though, things can still go wrong. Tenants can lose their job, they may separate, which can lead to them falling into arrears.

You can protect yourself from the impacts of this, by obtaining a Rent Protection Policy. These are often available through referencing companies or other landlord insurers. To be eligible your prospective tenant needs to meet all the referencing requirements.

The policies will pay out if your tenant falls into arrears during the tenancy and to its conclusion. They also offer you legal cover (potentially saving thousands of pounds). This enables you to gain legal possession of your property if the arrears spiral. To find out more click here.

Christopher Shaw Residential partner with Goodlord to offer this service as a bolt on to our managed clients. For further information click here.