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In this current climate, landlords on variable mortgage rates will be challenged by the rise in interest rates, that are more than likely to continue throughout 2023. Raising rents to cover this increase will be an issue, with tenants struggling to afford payments with the cost of living crisis.
Property in London costs on average £2,000 to rent, which means tenants are paying more than ever. With the current cost of living crisis and lack of wage increase to match inflation, it is more than likely that we will see tenants defaulting in rent payments as they prioritise necessities such as food and fuel.
Landlords working with tenants to find a solution that works for both parties is the best way forward. Not coming to an agreement could lead to the worst case scenario of a landlord having to serve an eviction notice – a scenario that both parties would want to avoid due to the complexity, inconvenience, and how time consuming it will be.
Similarly frustrating, will be the landlords who have empty properties that they are struggling to occupy. Thus, losing out on the income to support their increased mortgage payments.
Having a guaranteed rent scheme in place can eliminate the difficulties that landlords could be due to face this year. By transferring the responsibility of a property to Elliot Leigh, not only do we guarantee your rent to be paid monthly (regardless of if it's occupied or not), we also take the hassle away of overall management, including engaging with tenants and basic maintenance.
Over the last 20 years we have partnered with local authorities and various other organisations in and outside of London to house tenants in need. With the demand of housing rising, we are in need of more properties to give potential tenants somewhere to call home.
If you have a vacant property that you believe is suitable for Guaranteed Rent, or require some more information, do not hesitate to get in touch to discuss your options.