Here at Rent My Home Today, with years of experience, and offices across the UK, we keep our fingers on the pulse, seeing trends occurring in our business and across the wider private rented sector.
A stand out trend we’ve noticed is that our Guaranteed Rent service is becoming more popular.
There are several reasons this is the case, and below are the main three:
Landlords don’t like uncertainty. Tenant demand and financial stability are both major stumbling blocks for anyone trying to rent out a property.
At this moment, there’s huge uncertainty for landlords, ranging from the impact of Brexit, interest rate rises and increasing regulation to tax changes.
This uncertainty makes our Guaranteed Rent service a safe and enticing option for landlords who want to know where they stand, as they will know that the rent will be paid on time every month, whether the tenant pays or not, or if the property is void.
Waiting lists for court hearings are getting longer. If you’re trying to seek possession for non-payment of rent, you could be waiting up to nine months to get a hearing date in extreme cases. The cost of court fees along with 9 months of not receiving any rent can be detrimental to a landlord’s wellbeing as well as their bank balance.
There have also been a number of posts on landlord forums saying that their Section 21 hearing was thrown out by the Judge because the paperwork had not been completed to the letter of the law.
This means that the landlord must start the process again.
Professional fees for gaining repossession of a property can typically range from £500 to £2,000 depending on which stage you’re at in order get your property back. If you use High Court bailiffs for the eviction, you may get a date more quickly, but it will inevitably cost you more.
With our Guaranteed Rent Insurance for landlords, you don’t have to worry about rental arrears or getting a delinquent tenant out of their property. If the tenant hasn’t paid, then we are responsible for the costs of gaining possession.
We also undertake rigorous and robust tenant referencing for all our landlords, no matter what level of service they choose, so this mitigates the risk of getting a rogue tenant in your property.
The media is full of stories describing tenants that are increasingly struggling to pay the rent and that in some areas like the south east, the rent can be up to 75% of the tenants take home pay.
A significant number of tenants don’t have any savings to fall back on, which puts their ability to pay the rent into question, should they be unable to work.
Research from reputable 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.
The survey of over 2000 UK adults 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.
With this in mind, if a tenant loses their job, then they may struggle to pay the rent almost immediately as they have no savings to fall back on.
Again, with our guaranteed rent scheme there is no problem should the tenant lose their job or fall into financial hardship.
Rent My Home Today has a proven track record of building long-standing relationships with landlords, including some that have been here since the company’s infancy without any complaints.
We invite anyone interested in our Guaranteed Rent service to get in touch with us to discuss what we can do for you.