Landlords – Protect Yourself During a Recession
With support schemes scheduled to end this month, find out how you can avoid the recession as a landlord.
Until now, many people have taken advantage of the Furlough Scheme and mortgage holidays but with these coming to an end, there could be a fallout and as a landlord you may find that your tenants are unable to meet their rental obligations despite new wage subsidy schemes.
Here are some tips to protect yourself from a financial fallout:
Hold on to your tenants
It sounds obvious but many landlords don’t do enough to keep good tenants. If you have great tenants try and hold on to them, even if it means reducing the rent for a short period of time. If you can afford it, it’s best to drop the rent by around 5% and support tenants that are looking after your property and meeting their rental payments on time. Advertising to let can lead to uncertainty and potential void periods which are much more costly in the long run.
Help your tenants access support
There are several rescue packages in place to help renters whose income has been adversely affected by the pandemic. Signposting tenants to the right source of support and advice and make yourself aware of the support available that can cushion the impact felt by your tenants. Citizens Advice is a great starting point to find out about what support funds are available.
Carry out strict checks on tenants
When considering a new tenant, look at the industry in which they work and vet their employer. Make sure you use a letting agent that can carry out all the relevant checks and ensure that they will be able to meet their rental obligations.
Take out rent insurance
We highly recommend that you consider protecting your rental income by buying rent guarantee insurance that will pay out if tenants can’t. Although many providers pulled these products at the start of the pandemic and, here at Clyde Property we offer Rent on Time. With Rent on Time, your market rent will be paid to you each month by Clyde Property Letting, regardless of whether the tenant pays or not. Your monthly rent will be paid up to £2,500 per month up to 6 months or until vacant possession is obtained (whichever is soonest). You are also covered for legal costs to obtain possession including court costs. We also cover breach of the tenancy agreement including non-payment of rent.
This guaranteed rent, paid by Clyde Property means your finances can be more easily managed, alleviating the stress and worry about rent arrears or eviction costs. Discover more.
Adapt to the ‘the new normal’
Many renters are seeking outside space given that we have all been forced to stay inside for much of 2020. In addition, many people are now working from home and need that additional space to enable this. Make sure you highlight balconies and roof terraces, keep your garden looking usable and welcoming and even consider opening up space and creating a home office in an unused area such as under the stairs or any annexes that are in the property.
In addition, for those who are working at home, super-fast broadband is a must. Make sure you have the fasted available broadband especially if Fibre is available in your area. Find out if you can get Fibre broadband here.
Finally, there has been a rise in the number of people who have pets this year. Consider relaxing rules and allowing pets in your property.
Check to see if you can save money on your mortgage
Do you have the best mortgage deal available to you? Talk to a mortgage broker who can look at the whole of the market to ensure you have the best buy-to-let mortgage. This can help to bring down your monthly costs especially as mortgage rates are historically low.
Clyde Property is a leading independent, multiple award winning estate and letting agent with 30 years’ experience in selling and letting property in Scotland. Just call your local Clyde Property branch today, for friendly, impartial advice on finding your next dream home.