Northwood Managing Director Nick Cooper advises how landlords can limit the risk of repossession.
“Buy-to-let has never been so appealing. With the temptation of gross rental yields of 6.2% , everyone from aspiring property moguls to pensioners hoping to boost their income are turning to buy-to-let.
However, it’s become clear that many are jumping in too quickly without taking into account the full picture and costs that come with a buy-to-let property.
The figures speak for themselves: one in five repossessions during the first three months of 2013 was on buy-to-let properties.
Two factors in particular have been identified for this rise: rising rent arrears and void periods. And of course, it stands to reason that if you aren’t receiving a rental income and don’t have a contingency fund in place, the likelihood is that you’ll struggle to make your mortgage repayments. But this doesn’t necessarily need to be end of your buy-to-let dream…
Northwood’s Guaranteed Rent service could help to reduce the risk of repossession. This 12 month contract ensures that you receive a fixed income each month, regardless of whether the property is vacant or whether the tenant stops paying. There are no charges for setting the contract up, no tenant introduction fees, no commissions and absolutely no “hidden extras” to pay. In essence Northwood offers a monthly rental value that is marginally less than the market rate but in return completely removes all of the risk and hassle involved in more traditional lettings options. It’s a winning formula and one that over 13,000 landlords nationwide already benefit from.
If you think about it, being a BTL landlord can be like having a second job. You are responsible for finding tenants, then once in the property, you need to manage rent collection, respond to tenants’ calls and needs and be responsible for the general maintenance of the property. In short, it’s a huge time commitment and not one that can be taken lightly. That is why we have a Guaranteed Rent service. We look after every part of the rental process so our landlords don’t have to and ensure that they get paid, no matter what.
So don’t let the risk of repossessions put you off buy-to-let. With forward planning and Guaranteed Rent, it could indeed provide a boost to your income. For more information about Northwood’s Guaranteed Rent service click here or call your local Northwood office.”