Tag Archives: rent arrears

A rise in court possession, landlords turning to court for help with arrears

December 8, 2011

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A rise in court possession, landlords turning to court for help with arrears

With rising rents, pay freezes and even fewer jobs, more and more tenants are struggling to keep up with rent payments. This has led to a rise in court possession orders and landlords are giving up trying to claim back the arrears themselves and heading to court.

One insurance firm have claimed that out of 40% of courts in England and Wales between a 10% and 50% rise in claims ending in possession for landlords and agents, up on last year.

As tenants are struggling now more than ever to find rent payment money, the number of applications for possession has increased by 6%.

Rent guarantee insurance is now being taken out by landlords more than before, this being an important tool to help if your tenants do go into rental arrears.

Most landlords are now saying that they are rising their rental costs due to the costing of running a property portfolio also rising.

Research group BDRC Continental have published a new report that shows one fifth of landlords claimed their arrears had risen in the last quarter, also they claim almost half of them had experienced arrears.

BDRC Continental also found that 72% of those who have sought possession of their property were made to do this because their tenant had gone into arrears. Anti-social behaviour counted for half of possessions.

Source – rman.co.uk

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Protect yourself from rental arrears landlords!

November 1, 2011

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Protect yourself from rental arrears, don't be out of pocket!

This will be good news for landlords, but for tenants not so good!:

Rents keep rising and for the third quarter there is no exception . With a knock on effect to hit landlords, rental arrears also seem to be on the rise also.

A report done recently by LSL property services (LSL.L) shows that tenants in arrears have jumped to 19.5% in August. By the end of August, 10.7% of all UK rent was unpaid or late, which has increased from 9% in July.

“In the last two years, average rents have risen by more than £50 a months. With rents rising so quickly, soaring inflation and an uncertain economic outlook, over the long-term we anticipate that rental arrears will become a growing financial problem for landlords”, says David Brown, commercial director of LSL.

Joanna Elson OBE, chief executive of the money advice trust, says: “It is clear high rent costs are becoming more and more difficult for people to meet. With landlords pushing up rents this has left some people struggling to meet bills, particularly as this has coincided with a rise in inflation, particularly food and fuel costs.”

There are some steps that landlords can take to ensure the rent is paid and they are not left out-of-pocket…

Make sure you do your background checks…

Having credit checks done on your tenants are highly recommended to avoid arrears at all costs. Maybe think about lowering the rent slightly and have a good tenant in secure employment rather than loosing out altogether by having high rent and a tenant who can’t pay for it.

Any good letting agent will check the tenants references before even letting them view the property.

“We get reference from employers, from the previous landlord and from the tenant’s bank”, says Ed Peel of letting agent Winkworth. Getting just one reference from a previous landlord could mean they just want to get rid of the tenant, so landlords and letting agents need to be more efficient with this.

Make sure you know the housing benefit limits for next year!

Check my tenant, a company ran by the credit reference agency Experian, are a recommended referencing service available to landlords. It is £15 plus VAT for a check to see how suitable or unsuitable the prospective tenant is. This is there instead of landlords paying £25 plus VAT for a comprehensive report.

There are other companies who offer their services based on the Experian database, Endsleigh and rentchecks charge £6.95 and £9.95 respectively. Any information on credit card arrears are only available to mortgage lenders and any other suppliers of credit.

Beware of housing benefit changes…

Job loss for a tenant is a big thread to landlords and can easily put the tenant into arrears. With this, landlords need to know if the rent they charge goes along with the new lower levels of local housing allowance, which was formally housing benefit.

The new limits, coming into effect from January 2012, are starting from £250 for a one – bedroom property, £290 for a two – bed property, £340 for a three – bed property and stopping at the maximum limit of £400 for a four – bed property.

In January, the maximum rent payable by housing benefit will change and be reduced from average local rents to the value of the lowest third of rents. Most of the claimants, estimated to be at around 21,000, affected by the rental caps are in London. 775,000 tenants are affected across the country by the lower 30% benchmark.

 

We hope you found this information useful. Please remember to use CIA Insurance when you or your family and friends need motorcycle insurance, landlords insurance or commercial insurance.

 

Source- http://www.citywire.co.uk

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If you are struggling to pay your rent, take action immediately!

October 28, 2011

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If you are struggling to pay your rent you may get into rent arrears and be at risk of loosing your home. This article will give you information on how to manage your debts and how to talk to your landlord to find a solution to this problem. If your landlord takes you to court, this will also provide you with advice on what happens on the day.

If you are getting behind with your rent or you see problems arising with being able to pay rent in the future, make sure you take action immediately. You must find out what tenancy you have, you may also get advice and it may be best to plan a budget to settle your debts. Talking to your landlord and trying to come up with a solution with them may help you. You may receive letters from your landlord about your rent arrears, you must read these and understand the information provided, also you must understand that your landlord may take action against you.

Find out what tenancy you have…

 Finding out what tenancy you have is important because it can make a big difference to what happens when you have rent arrears. A tenancy is a written legal agreement between a landlord and a tenant.

You may be asked if you a council tenant, Housing association tenant, private rent tenant ect…

If you are taken to court by your landlord, the judge will look into your tenancy to decide what action to take. This could make the judge decide when you need to leave your home or when and how you can pay your rent arrears and if you can stay in your home.

Making a budget…

There are plenty of organisations out there today that can help you with your growing debts, these companies will help you make a budget and help you pay off what you owe. One of those organisations is National debt line (http://www.nationaldebtline.co.uk/) and the national organisation Shelter (http://www.shelter.org.uk) offer help and advice on housing.

Finding a solution with your landlord

 If you do see problems arising contact your landlord straight away, between you there may be a solution made for this problem. The landlord may want to keep you as a tenant so they don’t loose money completely and have to find someone else to live in their property.

Keep any letters written between yourself and the landlord always if you come to an agreement, if you don’t come to any agreement your landlord may have to take action against you.

Court

If you are sent court papers you MUST attend, you will have your chance to explain to the judge why you are in rent arrears even if your landlord hasn’t listened to you, the judge must listen to both sides! If the judge decides that you must leave your home you can take legal advice and appeal the decision.

We hope you found this information useful. Please remember to use CIA Insurance when you or your family and friends need motorcycle insurance, landlords insurance or commercial insurance.

Source- http://www.direct.gov.uk

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Buy-to-let property boom, but tenants hit with arrears…

October 27, 2011

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Landlord Assist

Landlord Assist are a nationwide tenant eviction and referencing firm and they have said the rising popularity of buy-to-let property will continue to grow with the property owners reaping the benefits.

The rental property market has stayed so strong recently because of the continuing struggle for buyers to try and get onto the property ladder.

There has also been an issue warned by Stephen Parry, commercial director for Landlord Assist, with rising rents means more tenants getting into arrears and then have to default on payments.

It has been recommended to have rent guarantee insurance if you are a landlord to avoid this. Mr Parry said :

“Unemployment is one of the main reasons why tenants default on their rental payments and unfortunately this can have a direct impact on a landlords ability to meet their own financial obligations.

The rental property market has stayed so strong recently because of the continuing struggle for buyers to try and get onto the property ladder.

“We strongly urge landlords to take immediate action in situations of rent arrears and consider taking out a rent guarantee policy to protect their interests.”

Landlord Assist has said that unemployment in the UK is currently at a 17 – year high.

We hope you found this information useful. Please remember to use CIA Insurance when you or your family and friends need motorcycle insurance, landlords insurance or commercial insurance.

Source- http://www.stride.co.uk

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