As tenant rent arrears continue to climb, 2012 is predicted to make it increasingly difficult for Landlords who rely on a monthly rental income to pay the mortgage.
According to research by Templeton LPA, in the last quarter of 2011, nearly 79,000 tenants were in severe rent arrears of 2 months or more across England and Wales. And as the economy continues to stagnate, the number of tenants falling into rent arrears is set to continue to rise throughout 2012.
However, Northwood Landlord’s who are on our Platinum Guaranteed rent scheme completely avoid the threat of financial losses of tenants falling into rent arrears. As Northwood take the full impact of any late or non-payment by tenants, it allows our Landlords to rest assured that the agreed monthly rent will continue to land in their bank account each and every month.
If rents continue to be unpaid, the next course of action is to evict the tenants through the courts. In the last quarter of 2011 nearly 25,000 tenants faced court eviction notices, representing an increase of 11% on a year ago.
Many Landlords who pursue this course of action vastly under-estimate the complexities and time involved in evicting non-paying tenants. For example, if using a ‘section 8’ notice for a breach of tenancy (which includes rent arrears) then no court action can be taken against a tenant until they are in arrears for at least two months. The Landlord can then expect the eviction process to take a minimum of three months. Five months of no rent would obviously place considerable financial burden on any Landlord. In addition, the implementation of the Government’s decision last year to close 140 County courts nationwide coupled with the rise in the number of court eviction notices being served, is further increasing the time it takes to evict tenants.
With Northwood’s Guaranteed rent scheme we not only cover the court costs involved in evicting non-paying tenants we also fully manage the eviction process.
For more information on how to avoid the risk of tenant arrears and the other benefits of our Guranteed rent scheme, please contact your local office.