Recovering Outstanding Rent

As a buy to let landlord, nothing can be so frustrating as outstanding rent from tenants. When mortgage repayments are due, outstanding rent can damage your financial situation and reduce the profitability of your buy to let business. If you follow the ibuytolet guidelines to the letting process, and suitably screen your tenants, then you should be covered for every eventuality.

Recovering rent from tenants on benefits

If you are renting to DSS tenants and they fall into arrears despite claiming housing benefit, it is your responsibility as the landlord to inform the Benefit service. Problems will be acted upon as soon as possible.

The council will not reinstate payments until they are satisfied that no fraud is being committed. Housing benefit will be suspended. When the landlord and tenant are in dispute, the council will not become involved in the cause. However, if the tenant owes arrears of eight weeks or more and vacates the property, the council may make payments on their behalf. Landlords who are owed rent can request payment from the council directory. In this instance it is a good idea to remain in constant communication with the council.

Recovering rent from private tenants

It is often more sensible and less costly to resolve these matters informally, but more serious options do exist in the case of arrears. This involves taking your tenant to court, where they may be served with a County Court Judgement. In this instance, it will be sensible to seek legal advice before proceeding, because every situation has its own intricacies.

Tenant tracking and rent recovery companies

In the UK, numerous tenant tracking and rent recovery companies exist. They will usually offer a range of services to the landlord who is out of pocket. These could include:

-         Application for a county court judgement on your behalf, should a tenant default.

-         Tracing of tenants in order to collect rent arrears on the behalf of the landlord.

-         A letter to your tenants about Let Alert at the start of their tenancy.

-         Direct forwarding of any outstanding rent to the landlord.

These companies therefore act to reclaim outstanding rent, and can also serve as a deterrent to those tenants who were considering withholding rent.

http://www.letcheck.co.uk/