Tenants not paying their rent? Facing possible tenant eviction or legal fees? Let’s look at your options…
Without doubt the 2020’s property market has thrown up some surprises to us all with a pandemic thrown in the mix. Whilst residential property sale prices have continued to boom with an 8.9% increasei, landlords of residential properties have faced difficulties with the removal of troublesome tenants. With a lack of alternative rental supply, and the government amending the use of a Section 21ii (whilst working very much in favour of the tenant) landlords have seen reductions to their personal incomeiii and struggled to make the repayments on their own buy-to-let mortgages.
Has your property portfolio given you a headache this year?
You won’t be alone if your property portfolio has had you reaching for the paracetamol on more than one occasion. The National residential Landlords Association reported that ‘more than half of private landlords have lost rental income as a result of the Covid-19 pandemic’. As a result, a third of landlords have also indicated that they were now more likely to either leave the market entirely or sell some of their propertiesiv.
With average eviction times across the country standing at 44.5 weeksv, and half of evictions taking 20.3 weeks there still remains a lot of insecurity in the industry. In conjunction with the amendments to the Section 21vi guidelines, landlords with ‘troublesome’ tenants have been stuck between a rock and a hard place with many landlords wondering how tenants seemed to have so many rights to a property which they ultimately do not own!
What can you do to protect your rental income?
There is thankfully, a way to protect your rental income and ensure that you, as a landlord, can maintain a level of financial security. Stride are pleased to be able to offer you Rent Guarantee Insurance (sometimes known as Tenant Default Insurance.) This is a policy that will cover you for Rent Recovery, Tenant Eviction, Property Damage, Legal Defence, Property & Squatter Protection, and therefore offers you ‘Rent Guarantee’. With all of these protections in place, it’s also good to know that the price of the rent guarantee insurance is tax-deductible against your rental income. Landlord confidence may still be low vii with 73% of landlords across the UK freezing rents but with Stride offering to protect your rental income you know that you can confidently move forward with your property portfolio and leave the paracetamol in the medicine cabinet!