With demand for rented accommodation soaring, Landlords could be forgiven for thinking that their annual rental income is increasing at the same rate. Unfortunately however, the number of tenants falling into rent arrears is rising sharply according to the charity National Debtline. They have experienced an 84% increase in the number of people seeking help with rent arrears in the last four years. Against this background, the number of court orders issued for tenant evictions during the last 12 months has risen by 9%.
Some 75,000 households across England and Wales are now in severe rent arrears which is a 13% increase on the prior year. There is real concern that the trend will continue as the full impact of the Government’s austerity measures are yet to hit.
Landlords are therefore strongly encouraged to take swift action and gain professional advice when a tenant goes into arrears, as the situation is unlikely to be resolved on its own.
Northwood’s Guaranteed Rent scheme provides Landlords with the total reassurance that they will never miss a rental payment, regardless of whether the tenant in their property is in arrears or not. Even if the situation deteriorates and rents continue to be unpaid, Northwood will take total responsibility for handling all court proceedings and costs associated with eviction, so that the Landlord is removed from all risk and the hassle inevitably involved. Northwood’s scheme is NOT an insurance policy, so there are no monthly premiums to pay, it covers you if the property is vacant and pays you for EVERY month that the tenant is in arrears or in the process of being evicted. These features not often found in insurance policies on the market.