Voids and property damage an eternal issue for landlords!

September 9, 2015

Since private landlords first began renting out properties, to the current day, they have had to deal with an ever-changing market place

Rents rising and falling, property prices inflating and deflating, interest rate changes, legislation, compliance, local trends, national trends …. the private rented sector (PRS) is an ever-changing arena and a sometimes stormy sea that landlords must continually navigate!

However, certain issues remain eternal.  If you turned back the clock and asked a landlord 20 years ago what was the major concern to them when buying their first investment property, we believe they would give exactly the same answer as a landlord starting out today.

They would tell you “damage to my property” and “rental arrears”.

A recent survey by Access Legal of 2,000 landlords has highlighted exactly this.

The Annual Landlord Report, released by Access Legal on 21 August 2015, suggests that the main landlord concerns are increasing upkeep costs, cuts to tax breaks, and almost half (46%) of tenants not paying rent arrears, even after court proceedings.

The survey estimates that £9.9 billion is spent on damage, repairs and rent arrears, every year. £4.5 billion accounts for damage to properties, while £900 million is the price landlords pay to cover unpaid rental income. Respectively, every landlord in the UK is out of pocket by £6,600 covering these costs, every year.

It was these very same concerns that prompted landlord and Northwood Founder, Andy Goodson, to formulate our Guaranteed Rent service almost two decades ago.

Andy realised that there were landlords who had busy day jobs and who wanted to simply “let and forget”.

They wanted a hassle-free landlord life and this objective was behind his thinking when he created a simple solution that continues to stand the test of time and has made the Northwood brand synonymous with “security”.

Northwood has always endeavoured to educate landlords about the true cost of being a landlord.  Many property investors do not factor in voids, repairs, maintenance, legal fees, and other issues when doing the numbers.

It is under-taking this exercise which demonstrates the integrity and value of our Guaranteed Rent service.

Northwood agents are able to offer Guaranteed Rent because they know their area so well.  They also manage multiple properties, meaning that they are able to spread their risk across many properties, not just yours.  Our service transfers the financial risk of the tenant not paying the rent from the landlord, to Northwood.

We are very proud to say that we recently received a testimonial from a landlord who had been using our Guaranteed Rent service for 14 years:

“Excellent service for the last 14 years. Would recommend the guaranteed rent scheme. In all the years I rented the house I never missed a month’s rent and they even sold the property for me.

Thank you Northwood Portsmouth  – will certainly use your services again.”.

View original testimonial

Find out more about how we build long term relationships with landlords >>> here. 

Eric Walker, Managing Director of Northwood, commented:

“Whatever the future holds for landlords, one thing that remains steadfast and that they can put their trust in is our Guaranteed Rent service.  It’s simple, straightforward, and easy to understand.  It does what it says on the tin!  Any of our 85+ offices around the U.K. would be happy to speak to any landlord and go through the numbers with them to find the best level of service that suits their individual needs.

We pride ourselves on our high standards and reliable service across the network and only today received the following comment from one of our landlords … “A more than satisfactory 4 years of dealing with Northwood”.

We are committed that our Guaranteed Rent service will continue to provide complete landlord peace of mind, no matter what issues arise in the private rented sector”.

See – 5 Guaranteed Rent myths busted!

Property investment nirvana is to buy a rental property with income from the day you acquire it.  Our Investor List has a selection of properties for sale, some tenanted and some with Guaranteed Rent.  View our Investor List. 

Northwood is one of the largest and most recognised lettings agents in the U.K. and the leading supplier of Guaranteed Rent to give landlords complete peace of mind.

Find us on Twitter @northwoodUK or visit our YouTube Channel.

 

 

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