When it comes to costs and managing finances, 2018 is shaping up to be a year of uncertainty and volatility for both landlords and tenants.
With regards to tenant affordability of rent, new research from insurer, Royal London has revealed that 5.8 million working private renters do not have a plan B in place to cover their rent if they or someone in their household became too ill to earn an income for three months or longer.
Over 2,000 working adults were surveyed, and worryingly nearly half (48%) of these people have never thought about how they would cope financially if they were too ill to work.
The survey revealed that over a third (39%) of working renters have no savings at all, compared with around a quarter (23%) of the wider population. Nearly three in five (58%) of renters have less than £2,000 in savings.
The average amount of debt per renter is over £4,600; nearly a third (32%) of working renters owe between £2,000 and just under £10,000 with 14% owing £10,000 or more. So not only do renters need to consider how they would pay their rent if illness struck, they would also need to find the money to pay the debt if they were too ill to work.
Working renters were asked what steps they would take if they were ill and couldn’t work for three months or more; nearly half (48%) would apply for state benefits, just under half (45%) said they would reduce their household expenses, and around a third (36%) said they would use their savings.
With tenants’ finances stretched to the max and little contingency in place, it seems inevitable that more landlords may experience rent arrears in 2018.
However, while tenants are struggling to find a “Plan B” if they cannot afford to pay the rent, landlords do have an option, and that is our market-leading Guaranteed Rent service.
Our Guaranteed Rent service is trusted by over 13,000 landlords across the U.K. and does what it says on the tin. We will pay the rent on time every month, whether the tenant pays or not, and whether the property is void or not.
This gives our Guaranteed Rent landlords complete peace of mind that the rent will be paid.
Your local Northwood office will give you a personalised Guaranteed Rent quote for your property and, as might be expected, this will be below the market rent.
However, when assessing whether the Guaranteed Rent service is right for you, you should take into account potential voids and what it is worth to you not to have to worry about the rent being paid on time. For many busy landlords who simply want to “let and forget”, the Guaranteed Rent service provides complete certainty.
So, while tenants may not have a Plan B if their circumstances change and they can no longer afford the rent, landlords do have an option if they do not want to worry about rental arrears, and that is Northwood’s Guaranteed Rent service.
If you want rental arrears and voids to be a thing of the past in 2018, make our Guaranteed Rent service your “Plan A”.
All our 80+ offices around the U.K. are more than happy to talk through how the service works and give you a no obligation quote for your property, so get in touch today!
Northwood is one of the largest and most recognised estate agents in the U.K. and the leading supplier of Guaranteed Rent to give landlords complete peace of mind.
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