Most landlords are lucky enough to have some financial savvy about them – it’s why they chose to invest in property after all! For tenants, however, it’s not always the case and most landlords will have, at some point, encountered a tenant who is in real financial difficulty. This is one of the greatest risks of property letting and, if you don’t have rent guarantee insurance, it can put your livelihood in real danger. How should you deal with tenants who are having real financial problems?
Find out the Answers
It’s likely that a redundancy is the cause of financial worry for tenants and it’s possible that this could quickly and easily be resolved. What is more pressing is if tenants are owing to many creditors and have credit card bills, overdrafts and utilities to pay. If debt is a temporary thing it may be resolved and a few week’s grace might be all your tenants need. There is no point rushing into an eviction if you really don’t have to.
Keep on top of your Creditors
A lot of landlords are surprisingly poor at keeping tabs on what they are owed. If you were expecting a credit to arrive in your account and it doesn’t, you could end up short and charged interest on payments yourself. It may be that your contact allows you to fine tenants for these charges, but don’t expect any penalties or interest out of a tenant who owes you rent – it’s not likely to happen.
Evictions and Compassion
Sometimes there really is no other option and you have to begin eviction proceedings against your tenants. That is your decision to make, but it is worth remembering that evicting tenants could leave them without property. Your legal responsibilities here are minimal, but that doesn’t mean you can forget about your former tenants; make sure they have somewhere to stay at least temporarily and, if not, it could be worth getting in touch with a housing charity.
It’s always difficult for the landlord who has to make business decisions which might make life difficult for tenants, but remember there is support available for landlords and tenants when evictions are the only option left – never be afraid to ask.