The list of things that landlords need to worry about is large, and it is understandable that landlords are looking for assurance and confidence. Ever changing regulations and requirements mean that landlords must remain up to date with the market but perhaps more worrying for landlords is the threat of tenants not being able to pay their rent.

Many people are struggling financially now, and it is no exaggeration to say that many tenants are finding it difficult to pay their rent each month. National Debtline released a string of worrying statistics in October of 2018 with respect to tenant arrears:

• 1,500 tenants per day are calling a debt charity for support with rent arrear issues
• The number of calls from tenants struggling to pay rent has risen 28% in the past two years
• The number of calls from tenants struggling to pay rent has risen by 9% in the past year
• One in 10 calls the National Debtline receives are about rent arrears, this is an increase on one in 16 in 2007 and one in 12 in 2017

Landlords should also be aware that the costs of evicting a tenant can exceed £1,500; so, the overall costs of a tenant failing to pay can be hugely prohibitive to a landlord.

Landlords must take steps to protect themselves and their livelihood

It is understandable that landlords feel anxious about these figures and the potential impact on their income and livelihoods. When tenants fail to pay rent in full and on time, landlords are placed at risk but at Innovate, we’re here to help.

As an independent estate agent based in West Midlands, we like to think that we play a role in supporting the local community. Times are tough for many people, but our rent guarantee service ensures that landlords can let in confidence. This provides assurances for local landlords and in doing so, it creates more rental opportunities for local tenants. With this service, we can remove a lot of the risk, pressure and concerns for the local community.

What is a rent guarantee?

As the name suggests, a rent guarantee from Innovate protects you if a tenant fails to pay their rent. Our rent guarantee service covers the total monthly rent, regardless of how many tenants are listed on the tenancy agreement.

Why West Midlands landlords should choose Innovate

In the West Midlands area, the average annual rental income is £7,000. Given the cost of evicting tenants who fail to pay rent and the associated legal costs, landlords are likely to suffer financially if they have a tenant who cannot or will not pay. However, at Innovate, we charge £200 per annum for our rent guarantee service which also provides cover for legal costs in the event of a breach of contract or rental arrears.

With Innovate, you can be confident that:

• 100% of monthly rent for a maximum period of six months from the initial arrear will be paid
• Legal expenses with respect to eviction costs, up to a total of £25,000 will be paid if a tenant is in breach of their tenancy agreement
• When a vacant possession occurs, you will receive 50% of rent for two months while new tenants are sourced

In the current economic climate, it is vital that landlords seek to minimise their risk and develop confidence in their services. At Innovate, we provide you with the platform to ensure you can focus on core tasks as a landlord.

If you are a local landlord and you would like to sign up for our rent guarantee service, or you would like more information as to why this service is of considerable benefit to you, please contact Innovate and we will be delighted to help.