One consequence of the current economic climate which has not been given much attention, is the ability of tenants to keep up their monthly rental payments and the huge negative impact this has on landlord’s ability to manage without this income.
If we were managing your tenancy, we would be able to offer you the peace of mind that if a tenant does not pay the rent, you will still get paid and just as importantly, if you are faced with having to gain vacant possession, your legal costs would be paid.
We have an obligation to advise our clients of the risks associated with non-payment of rent and the following points should be taken into consideration which may arise as a result of NOT having adequate cover in place:
- Should a tenant stop, or is late paying the rent it is the Landlord’s responsibility to continue with any mortgage payments that may be due.
- If a tenant fails to vacate a property in addition to not paying rent, the Landlord is responsible for appointing a Solicitor to obtain possession and all the costs involved.
- Court action to recover arrears is the Landlord’s responsibility.
- The Landlord is responsible for all associated Court costs.
- Tenants will sometimes seek housing assistance from a local authority and may be advised to remain in the property until a Court Order has been served seeking possession. The Landlord will be expected to meet all the legal fees.
- The average time taken to obtain possession from the original arrears is normally between 4 and 5 months, the loss of rent including legal expenses could amount to several thousand pounds which is not refundable.
- It is not the Agents responsibility to pursue outstanding rent after a tenant has vacated the Property.
We would always recommend that a landlord should have the peace of mind to know that their income is assured as a precaution to minimise any possible risks.