A bottle of wine or a bad tenant? – What a choice to make!
Last week we heard that the Bank of England was not going to raise interest rates until Mid-2015 and one of the reasons for raising rates was because savers were suffering. I questioned whether those savers were big corporations who had vast swathes of cash or just pensioners that received more money in interest and stuffed it under the bed and then never spent it back into the economy. I asked this because I don’t know anyone who has any money to save.
The government’s argument that there were more personnel savers than borrowers is confusing because the countries personal borrowings are now in excess of £1.4 Trillion and growing by 4 billion a year, just taking our motor industry 80% of the 28,000,000 cars on the road are on a finance agreement.
The one thing we all know is we are not yet seeing the great return to the good old days and I only see most of the country still living hand to mouth. So as more and more of us as landlords are struggling under new legislation, additional licensing, reduced rent rates and higher bills any additional interest raise rise will really put a massive strain on our investments. As our tenants struggle to meet their bills we will in turn suffer even more.
Think of the above for just one minute and now consider this; In 2013 over 35,000 landlords had their property repossessed because their tenants failed to pay the rent in full as landlords could not meet their commitments to their mortgagee and maintain their property within the losses the incurred.
In 2012/2013 – 98,917 landlords were granted an eviction to repossess their property from a tenant and today over 488 eviction requests from landlords are received every day. Those who lost their own mortgaged home to repossession last year was 110,605 and a further 35,000 landlords were repossessed over the period.
So let us summarize for those landlords and letting agents who think they cannot take someone else’s bad tenant and who do not join LRS to find out if an applicant tenant has been someone else’s bad tenant in the past.
• 98,917 landlords evicted tenants for none payment of rent.
• 174,588 people lost their home for not paying their mortgage and who will now be looking to rent in the PRS.
• Circa 35,000 landlords lost their investments because their tenant never paid the rent.
The people above do not just evaporate when they have been evicted they move on and find another person to take them in and statistically when they get to you they have nothing and still owe others plenty. I wonder what the percentage would be but would guess that upwardly of 50% of these people will struggle to meet the payments on their next property and that property could be yours if you don’t join LRS and network with your peers.
It is a simple equation do you want to be the next landlord on the list of someone who cannot meet their bills? Do you want to be the next person subject to repossession because you cannot pay the bills? Can you afford to take one of the 209,522 tenants and mortgagees that never paid their rent and mortgage last time around? “NO” then please join LRS, interact with your peers, stop playing Russian roulette and spend less than the cost of a bottle of wine in total and take some of the bullets out of the gun. Landlord referencing’s networking members can stop you taking someone else’s bad tenant, letting agents can stop giving their valued clients someone else’s bad tenants and together we can send a message out to tenants that if you sting one of us you never get a property with any of us.
Please join LRS today (Click here)
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