Tenants not paying rent? Avoid arrears with Guaranteed Rent
The world of property management can be challenging, especially when dealing with unpredictable factors like tenant arrears. A recent report by Creditfix found that the number of young people falling into debt while renting has shot up in the last two years. With the average level of debt for renters rising from £14,549 in 2021 to £17,347 this year for people who hold an insolvency voluntary agreement (IVA) with the debt relief company.
Creditfix put this down to the huge price hike from landlords which is highlighted in a HomeLet's September report which found that the average rent price in the UK is £1,276. From July to September, there was a 10% hike in private rental prices compared to the same period in 2022 and those living in London saw this rise by a further 12.1%, according to data from Rightmove.
Stephanie Chapman, chief operating officer at Creditfix, said: “The rental market, especially in larger towns and cities, is driving up prices and pushing younger people into debt.
“Many people are struggling to afford rent or find appropriate housing in today’s market which can quickly put strain on budgets."
For landlords seeking a reliable solution to avoid tenant arrears, guaranteed rent schemes like Elliot Leigh, have emerged as a beacon of stability, especially in the current uncertain housing market. So how can guaranteed rent schemes help landlords to avoid the pitfalls of tenant arrears while ensuring a consistent income stream? Read on to find out more
Understanding Guaranteed Rent Schemes
Guaranteed rent schemes offer landlords a fixed rental income, regardless of whether the property is vacant or the tenant falls into arrears. Essentially, property management companies or local authorities become responsible for paying the rent to the landlord, providing financial security and peace of mind.
Mitigating Tenant Arrears
1. Steady Cash Flow: Guaranteed rent schemes ensure that landlords receive a regular income, even if the tenant is unable to pay. This stable cash flow can help landlords meet their financial commitments without the stress of fluctuating rental payments.
2. Professional Management: Property management companies overseeing guaranteed rent schemes often have efficient systems in place for tenant vetting and management. They ensure that tenants are carefully screened, reducing the risk of renting to individuals with a history of arrears.
3. Timely Payments: With guaranteed rent schemes, landlords receive payments on time, every time. This timely income eliminates the uncertainty associated with waiting for late payments or dealing with the hassle of chasing tenants for rent.
4. Legal Support: Reputable guaranteed rent schemes often come with legal support. If a tenant falls into arrears, the property management company handles the legal proceedings, saving landlords the time and effort required to navigate complex eviction processes.
Additional Benefits of Guaranteed Rent Schemes
1. Property Maintenance: Many guaranteed rent schemes include property maintenance services. Regular inspections and prompt repairs ensure that the property is well-maintained, enhancing its value and appeal to potential tenants.
2. No Void Periods: In the event that your property becomes empty between finding tenants, a guaranteed rent company will not only pay you regardless of if your property is empty, but also fill your property with tenants on your behalf.
3. Reduced Administrative Burden: Guaranteed rent schemes often handle administrative tasks such as paperwork, inspections, and tenant communications. This reduction in administrative burden allows landlords to focus on other aspects of their lives or invest their time in expanding their property portfolio.
Guaranteed rent schemes offer landlords a robust solution to the challenges posed by tenant arrears. By providing a stable income, professional management, and legal support, these schemes create a secure environment for landlords, ensuring they can navigate the rental market with confidence. If you’re a landlord looking for a hassle-free way to manage your property, considering the Elliot Leigh Guaranteed rent scheme might just be the key to achieving financial stability and peace of mind.