Rent arrears are a landlord’s worst nightmare.
If a tenant can’t or won’t pay the rent, it can be hugely stressful, especially if you have a mortgage to pay.
If you own dozens of properties, a non-paying tenant won’t be so much of a financial burden, but if this is your only property and you are relying on the income, it can cause a great deal of worry.
The best way to avoid rent arrears is to choose your tenants carefully. There isn’t a fool proof method because there will always be tenants who end up in financial difficulties through no fault of their own but it is sensible to vet the finances of prospective tenants to make sure they can afford to pay the rent.
The referencing system used by Sheldon Bosley is tried and tested and over the years we can be very proud of the small number of tenants whose rent ends up in arrears.
Contact Sheldon Bosley for more details of how we can take the stress out of finding low risk tenants. Call 01789 292310 or 01608 661666.
In recent years the growth in the private rented sector has been attributed to a lack of easily available private mortgages, however, evidence seems to show that we, as a nation, are changing our attitudes to the properties we live in. Renting is now seen by many as a flexible and relatively hassle free way of living which suits modern lifestyles. It allows people to settle in a location where perhaps they couldn’t afford to buy but they enjoy living in. With a growing population of lifetime renters, increasing the amount of good quality, affordable rental accommodation is essential to meet this demand.
Nationally, it is being reported that demand is outstripping supply in the private rented accommodation sector which has had the effect of raising rent levels, although in more rural areas of the country such as Stratford upon Avon, rents tend to hit a ceiling due to the incomes of people working locally.
As a result of this, one area which is recovering ground after a disappointing period, is the ‘Buy-to-Let’ sector, with landlords now spoilt for choice with a record number of mortgage products to choose from. Low mortgage rates have continued making investment attractive, although any landlords looking to invest in the ‘Buy-to-Let’ market should factor in interest rate rises into projected business plans to avoid any unwelcome surprises in the coming years.
By Michael Scott – Associate Partner leading the Residential Lettings Department at Stratford.