Lettings Direct - Letting Agents, Property Management Specialists and Buy to Let Experts.
This is the Landlords and our own number one worry! After all, Landlords have expenses that need to be paid whether the tenants pay their rent or not – expenses such as mortgage, insurance premiums, maybe the Council tax or other bills.
The majority of professional tenants will usually pay their rent by standing order and will not want to default on any payment, let alone have the thought of losing their home.
As much as we reference Tenants prior to moving into the property and we like to think we are very thorough with this, unfortunately we (nor anyone) can pre-empt a change of the Tenants circumstances. This could be because:
When this does happen, which thankfully isn’t very often, our Property Managers are very diligent in check rents received on a daily basis and quickly identify any missing payments on the due date and will make contact straight away with the tenant to advise them that the payment hasn’t been received and that they need to make an urgent payment.
If payment hasn’t been received either when promised by the Tenant or with the following 2/3 days, then we will chase the tenant again and again until contact is made. A letter will also be sent to the tenant advising them that if payment is not received then they may be charged additional costs for late payment. Obviously we keep the Landlord informed at every stage.
Usually it’s a case that Tenants have forgot or been on holiday and the problem is rectified within a few days, however in the very unusual situation that payment is not made then as a matter of course we need to firstly check that the Tenant is still in residence at the property and a Property Visit is booked and we will issue a Section 21 notice which is the first stage in the possession process.
We will continue to chase the tenant to recover the rent with letters, phone calls and visits to the property.
If the Tenant has abandoned the property, then we have to follow the Abandonment Process.
With the best will in the world, we will do everything we can do to protect the Landlords interest, however if a Tenant won’t pay then we have to follow the Possession order process with the issuing of a Section 8 notice and then proceed through to a Court application for Possession of the Property.
With full referencing of the Tenant prior to moving into a property and careful management of the Tenancy and payments we do everything we possibly can to mitigate circumstances and it is extremely rare that this happens, however should Landlords require additional protection then there are Rental Guarantee Insurance policies available that cover for lost rent and costs.