Rent arrears, it truly is landlord cancer!
If your tenant has fallen into arrears, the odds of them paying might seem like a fantasy beyond the realms of reality, despite your best and most reasonable efforts! While many may scoff at the idea of using a professional Rent Recovery Service to reclaim what’s rightfully owed to you, using one might actually be your best bet!
Despite popular belief, using a professional service to take full control of recovering owed rent is often the quickest and most cost-effective solution. It’s definitely the most hassle-free.
No question, dealing with rent arrears can be terrifying, especially if your cashflow depends on it! Most landlords – rightly or irresponsibly so – rely on rent being paid on time every month to pay the mortgage payments, which means that if there’s a kink in the cashflow it can result in suffocating financial consequences!
I have a firm belief that if you’re a landlord for long enough – no matter how diligent you are – you’ll eventually deal with rent arrears. Having been a landlord for over a decade now, I’ve been through several deadbeat tenants run-off into the sunset owing me unpaid rent. Not only is it bad for business, but it’s also emotionally draining, and I’d be lying if I said the experience(s) didn’t make me question if it’s all even worth it (the whole landlord gig, that is).
While I do experience doubtful moments, I’m positive being a landlord is ultimately worth it for me, despite the pitfalls, because my BTLs makeup a significant part of my nest-egg, and that’s what I keep reminding myself. However, the frustration of being, essentially robbed, is never easy to deal with.
If your tenant has recently fallen into rent arrears…
One of the first and biggest mistakes landlords make when they’re dealing with rent arrears is to irrationally lash-out; that can often look like a barrage of abusive and threatening phone calls and text messages, or even worse, a full-on stampede straight to the front-door of the tenant’s home [with a sledgehammer].
Needless to say, don’t (even though I’d actually like to hear what happens if you do)! While I understand the urge, all you’ll up doing is creating an even steeper hill to climb for yourself.
Using a professional rent recovery service to resolve your dilemma might be the solution you need. However, if your tenant has only recently fallen into arrears, I personally don’t think it’s the first option you should explore. The best first step to take is to always try and resolve the arrears directly with your tenant (if that’s possible).
So if you’re at the very early stages, I recommend reading my guide on rent arrears first, and then explore the possibility of using a rent recovery company if you think that’s your best option!
You with me? Say it after me: “using a rent recovery service should NOT be your first step to solving rent arrears!”
Rent Recovery Service
Okay, so you’ve been patient, you’ve tried resolving the rent arrears with your tenant, but to no avail. Or possibly, your tenants have vacated the premises!
Now it’s time to bring in the big boys!
There are plenty of professional Rent Recovery Services around – a quick Google search will point you in the direction of dozens.
However, I’ve always used, recommended and endorsed LegalforLandlords for any issues with problematic tenants, including eviction services as well as rent recovery issues. I’ve had a good relationship with them for many years, so they offer my readers’ and subscribers’ free legal advice for landlords, with no obligations.
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The pre court action letter will show your tenants how serious you are about collecting the rent. It can also be used as a warning against damage to property, complaints from neighbours, late payments, historic arrears and any other serious concerns you have.
Here is a list of debt recovery services available:
*If this is your first time using LegalforLandlords use our bespoke discount code PIPLANDLORDPCL you will get your first pre-court letter FREE.
Call for Free Advice on: 0333 240 8255
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Please note, I try my best to keep the information up-to-date, but you should read the T&C’s from the service provider’s website for the most up-to-date information.
If you decide to use a rent recovery service, it’s important to fully understand the terms and conditions of their service! Get a clear idea of their fees, and ensure it’s written in writing.
Many debt/rent recovery services offer a ‘No win, no fee’ service, so if you decide to use one of them, get a clear definition of what a ‘win’ means. Generally speaking, if they achieve a ‘win’ it will cost more than if you were to use an ‘pay upfront’ service (that also achieves a ‘win’), so that’s something to bear in mind.
Why use a Rent Recovery Service?
- Takes the stress away – rent recovery services take over the entire process of chasing rent, so you don’t have to waste time doing it yourself. In most of these cases, the relationship between landlord and tenant are in tormoil at this point, so it’s usually better to avoid direct communication.
- Better success rate – using a third-party service can seem a lot more serious and scary, so it may encourage tenants to settle their debts. It shows your tenant you are serious about collecting the unpaid rent.
- Efficient process – professional rent recovery services know exactly what to do and the best ways of achieving positive results. Often they will try different methods if one doesn’t work.
Understand the reality of recovering rent
while using a rent recovery service may sound like the hassle-free solution you’ve been looking for, it’s important to understand the realities of trying to recover rent from tenants! Generally speaking, it’s usually very difficult to recover rent, and that’s because, in most cases tenants don’t pay rent because they don’t have the money! So on that basis, it doesn’t matter how you try and recover rent, if your tenant doesn’t have the money, he/she doesn’t have the money!
You can apply to a county court to claim money you’re owed by a person or business. You can make your claim online via the GOV website. It’s all relatively straight forward.
Of course, if you don’t know where your tenant is living (i.e. they have vacated your property without leaving behind new contact details), you may still need the assistance of a Tracking service.
Disclaimer: I'm just a landlord blogger; I'm 100% not qualified to give legal or financial advice. I'm a doofus. Any information I share is my unqualified opinion, and should never be construed as professional legal or financial advice. You should definitely get advice from a qualified professional for any legal or financial matters. For more information, please read my full disclaimer.