How to deal with rent arrears
Times are tough - wages are frozen, inflation is rising, job security is at an all time low and the fear of a triple dip recession never far away. For a private landlord this can mean the added pressures of rent arrears, court proceedings and ultimately evictions and unoccupied properties.
Over the past few years demand for rental property across the UK has driven rents to an all time high. This has meant that by the start of 2013 the average private rental outside of London was £750. This increasing cost of paying the rent together with other increases in the cost of living is leaving more and more people with rent arrears.
So can a landlord limit his or her exposure to rent arrears?
There are some simple but effective strategies to help limit your risk of having to deal with rental arrears.
1. Perform full and comprehensive checks. This includes obtaining (and checking) references and credit histories.
2. Ask for a guarantor who will protect you from arrears and ensure any shortfall is covered.
3. Take out rent guarantee insurance.
About the authorEddie Hooker has been involved in the insurance industry since 1985. He worked with many large insurers such as Legal & General and AXA Insurance prior to setting up his own insurance business, Hamilton Fraser, in 1996. Hamilton Fraser now employs over 130 staff out of their North London office, dealing with various insurance products for the buy-to-let property market such landlord insurance, rent guarantee insurance, emergency cover and tenancy deposit protection.
Eddie and Hamilton Fraser Insurance first started to provide landlord insurance as early as 1996 when they became involved with the Small Landlord Association, which later became the National Landlords Association.
By working closely with the industry’s leading companies Eddie and his team have built up a detailed understanding of the landlord market ensuring that the customer experience is founded on knowledge and support. This has been highlighted in a recent customer survey that found that 95% of Hamilton Fraser customers were either satisfied or more than satisfied with the service provided by the company.
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