Have you found yourself dealing with rent arrears and feel like you aren’t getting anywhere fast? Read on for our tips on how to make rent recovery for landlords a smoother process that will seek to maintain a good relationship on both sides.
As a landlord one of your biggest causes of concern is when tenant stops paying the agreed rent. And when that happens, dealing with rent arrears can be a complex challenge for landlords, requiring a delicate balance of empathy and practicality.
Firstly, establishing an open line of communication with your tenant is key to uncovering the root causes behind the payment delays. By understanding the reasons behind the arrears, landlords can tailor solutions to better support tenants in resolving their outstanding debts. This may involve offering flexible payment arrangements or exploring available government aid programs to provide tenants with the necessary assistance to address their arrears.
Whatever the solution or interim agreement might be, it is advisable for landlords to maintain thorough documentation of all interactions and financial transactions to ensure transparency. Good documentation that shows a timeline of events and communications will also facilitate any potential legal actions if needed.
In cases where the situation does not show signs of improvement, seeking advice from a reputable letting agent such as ourselves is a prudent step to comprehend the legal options available, including the possibility of initiating eviction procedures through a section 8 notice.
Whilst a section 8 notice informs the tenant that you intend to take them to court if they do not pay, be aware that to achieve a successful outcome then your paperwork and documentation needs to be perfect, as any error will be highlighted in the courts and your eviction will fail which will ultimately prove costly.
Try to view legal action as a last resort, prioritizing amicable resolutions through effective communication and mutual understanding whenever feasible is often a better solution for all concerned and enables a positive relationship to be maintained afterwards, whereas section 8 notice action will almost always end the relationship on a sour note.
To avoid falling into this situation, we advise you make steps at the outset of any tenancy and look to mitigate the consequences of a tenant falling into rent arrears. In the current climate it is so easy for the perfect tenant to lose a job, be made redundant or something worse. Therefore, we are great believers in “prevention is better than the cure.”
As a landlord you can take out an insurance policy to protect your asset against insurable events so why not consider from the outset of your tenancy a “rent guarantee insurance” policy?
Whilst we cannot sell you the insurance here at our lettings agency, we always recommend to our landlords that at the start of the tenancy you take out this particular insurance. If the tenant defaults and you have made sure that your paperwork is in order, the cover ensures that your rent is continued to be paid, and all legal costs to effect an eviction are also covered within the policy. This will soften the blow of undertaking an eviction by ensuring you don’t have an undue gap in rental payments until you take repossession of your property.
At Bricknells Rentals we are always here to help with advice. If you need assistance in auditing your situation then do not hesitate to give us a call on 01709 365584.
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If you are a landlord looking to find out more about any of our services, please get in touch. You can call us to request a free landlord’s pack or to further discuss our property management services, investment opportunities and more. Email us on enquiries@bricknells-rentals.co.uk or call us on 01709 365584.