Top Tips for Landlords During the Cost-of-Living Crisis
The cost-of-living crisis has put a great deal of strain on the British public, with rising energy bills, gas prices, and an increased cost of groceries leaving many worried about how they are going to make it through the winter. In fact, financial insecurities combined with rising rent payments has led to 78% of tenants being worried about how they will pay rent, according to the Home Let Rental Index, and an expectation of 400,000 households to fall behind on their payments, according to figures in The Telegraph.
It should come as no surprise then, that the current trending concern for landlords is rent arrears. However, it doesn’t have to be. While it is expected that the cost-of-living crisis will last well into 2023, there are steps that landlords can start taking today to help themselves, and their tenants, make it through the difficult months ahead.
How you can help amid the crisis:
Tip 1: Check costs with your energy provider – If you are the landlord of a ‘all bills included’ property, you ought to check with your energy provider to see the deal you are currently on. Should you find yourself in the fortunate position of having a contract up for renewal, shop around for the best prices. For those whose tenants manage the payments of their own bills, they are legally permitted to choose their own energy provider. If they inherited the services from you, or from a previous tenant, they might not be aware of the changes they can make, so open a discussion with them. Not only will this show an additional level of care, it can also help them to ensure they have enough to pay their rent.
Tip 2: Check the costs of other utilities – While not directly affected by the rising cost of gas and electricity, other contract renewals such as broadband and home insurance can also help you to save in other areas. Check the length of the contracts you have remaining and look out for offers or better deals that can help you, and your tenants, to save extra cash where you can.
Tip 3: Improve the energy-efficiency of your property – It is currently only a legal requirement to have an EPC rating of E or above, the government plans to move this to a C rating or higher could come into effect as early as 2025. While making upgrades to improve the energy efficiency of your property may present an initial cost, there are grants that you might be eligible for that can help ease the blow. As the upgrades are likely to be required sooner rather than later, making these changes now could help provide additional savings in the long-term.
Tip 4: Suggest your tenants have a guarantor – In the UK guarantor services are relatively new, but they can offer an additional level of security to tenants by providing an alternative to traditional guarantors such as parents or relatives – taking away some of the financial pressure they’re faced with and further protecting the landlord's investment. Estate agents and landlords should work together to find the pros and cons of personal vs professional guarantors.
Tip 5: Approach the upcoming months with empathy – Millions of people across the UK are going to find the next few months difficult, and many will already be panicking about how they will make it through. Be open to conversations with your tenants and understanding about the issues they face. Reassure them that you will help where you can, and that they aren’t going to face unnecessary increases to their rental costs.
RentGuarantor is a rent guarantee service, serving as a guarantor for tenants who are employed, students (including overseas), or receiving benefits. Backed by Lloyd’s of London, it provides a guarantee that rent will be paid in the unlikely event a tenant is unable to pay their rent. It will pay outstanding rent should the tenant legally fall into arrears, without any additional cost to the landlord. In the unfortunate event, it should come to that, the company will handle the complete rent arrears process on behalf of the landlord. To find out more visit: RentGuarantor.com
