Most landlords do their best to ensure that they let their properties to the best possible tenants. Unfortunately, however, it’s a fact of life that events beyond our control sometimes happen and, occasionally, you may be faced with a tenant that cannot keep up with repayments.
If a tenant falls behind on rental payments, this could have serious financial implications for you – especially if you have mortgage commitments on your property. At Julie Twist Properties, we can take the stress out of property ownership with our Rent Guarantee package.
For just an extra 2.5% on top of your usual property management fees, Rent Guarantee insurance will ensure that you receive rent each month, even if you tenants don’t pay.
To see how much this will cost you in real terms, take a look at the following example:
Let’s say your rent is £700 per month. With a 10% management fee, you will pay £70 (£84 inc VAT) per month.
With a management fee of 12.5% (which includes Rent Guarantee) you will pay £87.50 (£105 inc VAT) per month, which is £17.50 (£21 inc VAT) extra a month, or 56p (67p) per day. On a 6 month let, this will be a total of £105.(£126 inc VAT)
On average, with loss of rent, court costs and bailiffs, it could cost you £2000-£3000 to evict non-paying tenants.
Which would you choose?
Please call your Property Manager on 0161 834 8486 to discuss this option further or email firstname.lastname@example.org.