Role of an Estate Agency if Tenants Defaults on Rent

Role of an Estate Agency if Tenants Defaults on Rent

Being a trusted and responsible landlord, you always try to maintain a positive relationship with your tenants. You like to ensure the tenants’ safety and comfort in your house. Still, conflicts with renters can arise at any time. It especially happens when your tenants fail to pay at the right time.

You might have hired property agents to manage your rental houses. The agent also deals with tenants’ issues and resolves disputes. Thus, what is the role of an estate agent when your tenant cannot pay the rent? Find how the agent will help you.

What to do in case a tenant fails to make payment?

For some reason, a tenant may not be able to pay his rent every month. However, in this situation, you must not take a step to evict him. Eviction is a costly affair and consumes much time. Several other options are available to the landlord.

Talk freely to your tenant-

In most cases, failure to pay the rental charge is a temporary problem. Maintain a positive relationship with your tenant and learn about their problems. You need to show professionalism while dealing with your tenants.

Estate agents think that communication is important for keeping track of rental payments and resolving issues with tenants. You have to check your latest bank statement to know about the due rental amount. According to tenancy agreements, your tenant should pay the rent on a particular day every month.

When your tenant has failed to pay the rent, you have to contact him. Non-payment does not always indicate that he is a bad tenant. Personal issues may prevent him from maintaining consistency in payment. However, after recovering the financial position, your tenant will pay you the due amount.

Agents play an important role in providing the right information to your tenants at the beginning of the tenancy.

Try to reduce your rent-

A considerate landlord thinks of lowering the rental charge to enable tenants to pay the due amount without stress. Short-term rental schemes will be advantageous in this case. You have to mention the period for which you like to reduce your rent.

Get in touch with the tenant’s guarantor-

The guarantor of the tenant needs to pay the rent in case of failure of payment. Your agent will communicate with the guarantor to solve the problem. He will talk to the guarantor about the agreement and make him aware of the rent issues.

Let your tenants leave your house-

You can ask your tenants to leave your house without paying the rental charge for previous months. It will save you time and prevents losses in the future. These are some options for managing tenants who have not paid your rent for several months. Moreover, some tenants will not like to leave your property.

Asking your tenants to leave your house for failure in payment-

Your letting agent knows how to take steps legally and solve the problem. There are 2 common ways to achieve it.

Section 8- Sending a Section 8 notice is the most important step for rental contracts, which are not more than 6 months old. The notice will show the reason for which you like to take the property back from your tenant. Most commonly, landlords send this notice when tenants have violated the terms of their contracts.

You should send the notice at least 2 to 3 weeks in advance. Make sure that you have mentioned the date when the tenants need to leave your house.

Section 21-

A notice under section 21 is relevant for tenants who have already passed beyond their fixed contract terms. Your notice is to be sent 2 months before the date of leaving your premises. Never forget to mention the date of departure in your notice.

If your tenant has not left your house on that date, you can go for eviction by sending a court order. However, it is a complicated process and does not guarantee that the court will favour you. Helping you with the legal process is one of the estate agent's responsibilities UK.

Eviction involves 3 steps-

• The first step is to send a notice (Section 8 or 21) to your tenant.

• In case of refusing to leave your rental house, you can apply for a possession order. You have a chance of recovering your lost rent. But, there is no way to send your application online. Go to the local court dealing with housing possession orders.

• A warrant of possession can also be sent to the tenant, who has refused to leave your house. There are bailiffs to assist you in removing tenants.

Take advantage of landlord insurance-

In case of failure of rental payment, landlord insurance will be the right solution. Review the terms of your insurance. Before making a claim, you should ensure that you have abided by the terms and conditions of the policy. A good insurance policy saves you from the lost rent when your tenant has stopped payment.

### Hire letting agents- Avoid all the hassles-

A dedicated rental property agent will manage the everyday activities of your property management. From handling the tenant’s check-in and check-out to repairing your housing, everything is managed by tenants. Most importantly, he will deal with every step against the tenant who has not paid the rent.

You do not need to waste time managing the rent problems. As a landlord, you always have risks while renting out your property. To reduce your stress, you can rely on an estate agent, who will efficiently manage your property.

Do you like to learn more about rental agreements and relevant laws? You can visit the platform of The Real Property Experts. The professional team of this company will provide you with reliable guidance. As a landlord, buyer, or seller, you can contact TRPE to get solutions. At TRPE, dedicated consultants work closely with clients to give the best assistance. With more than 40 years of experience in London property, the property agents at TRPE will help you in the best way.