There are three aspects to a letting arrangement: the financial, the legal and the maintenance. ...
There are three aspects to a letting arrangement: the financial, the legal and the maintenance.
In this article we will look at the financial aspect and how it can affect the profitability of the let. With tighter goverment legislation on the horizon and the recent increase in stamp duty it has never been more important to make sure your rental income is protected.
With the best will in the world, you could have glowing pre-tenancy checks on tenants but circumstances can and do change overnight: a tenant may be hit with redundancy, illness or suffer a relationship breakdown. We've seen it all at Belvoir Lettings Northwich. And we've seen the fallout, it's not a pleasant experience for the landlord.
There are steps you can take to mitigate the risks associated with a non-paying tenant. As a landlord myself I take out Rent & Legal cover on my rental properties. It's an inexpensive product and an effective one which covers any rent arrears and also any associated legal and out-of-pocket expenses. Really worth its weight in gold!
Aside from taking an insurance product out there are some good housekeeping procedures worth following. The priority form the outset of a letting agreement is to establish a good rapport with your tenant(s). Effective communication between both parties prevents ebgenders trust and respect. If an issue does arise, whether it be of the landlord's concern in terms of maintenance then if it is reported in a timely manner then a potentially big problem can be nipped in the bud early on. Likewise if a tenant is going to be late with the rent then communicating this early can help prevent any bad feeling.
If there is mutual respect within a landlord/tenant relationship then a tenant is far more likely to look after a property better and make sure the rent is paid on time. Even if a tenant falls on bad times they are more likely to be communicative if the relationship is good to start with rather than buring their head in the sand.
Letting is a two way street and to be successful it needs commitment from both landlord and tenant