Why are private landlords playing Russian Roulette with their rent? …
Question: Do you think your hard working tenants (even with the best referencing in the world), who have paid the rent on time for years, are safe?… If so, then please think again !!
We say this because over the last 10 years the UK has seen a surge in larger companies going bust, announcing profit warnings and laying off thousands and thousands of UK staff.
For example here are just a few names of companies that we know in the high street:
- 2018 – Carpet right closes 92 stores.
- 2018 – Toys R US filled for bankruptcy with the loss of 3,200 jobs
- 2018 – Maplin & webb 2500 employees loss their jobs.
- 2018 – Carillion went bust with 20,000 direct employees made redundant, whilst the aftershock of companies owed £ 2 billion will systematically go bust and their employees will also be laid off and made redundant.
- 2017 – Monarch Airlines collapsed and 2,000 people lost their jobs.
- 2016 – BHS went into liquidation with the redundancy of 11,000 staff.
- 2014 – Phones 4U collapsed into administration after its last remaining mobile operator partner, EE, cut ties with the retailer and 5,596 employees suffered.
- 2013 – Struggling against online competitors, DVD rental firm Blockbuster closed its doors affecting 4,190 staff.
- 2012 – Electrical chain Comet went under, where 6,500 employees were made redundant.
- 2011 – Furniture giant MFI closed its doors, with 1,200 jobs lost.
- 2009 – 807 Woolworths closed and more than 27,000 people lost their jobs.
We are also seeing an upsurge of companies that are issuing profit warnings leading to redundancies; this year alone Saga Group laid off 100 staff and wiped of 20% of their share value in one day. Retailers such as The Pound Shop have also had the same problem along with the Card Factory, and so it goes on.
This indicates to us that business in the UK is not as safe as once thought, where the defunct companies listed above are really only the tip of the iceberg as to what may come.
Furthermore, The Office of National Statistics (ONS) has announced that the official figure for redundancies in 2017 was over 150,000 – bearing in mind that that figure is of course the official statistic and doesn’t include the likes of small suppliers and smaller companies that just went bust and closed their doors without official notifications.
The start of 2018 has also provided us with a report in The Telegraph that the High street retailers have suffered the worst sales in five years; http://www.telegraph.co.uk/
So the question is: How safe is that tenant of yours who has been paying the rent for the last 6 months or even six years ? ? ?
The answer is simple; “They are not safe at all.”
Every tenant across the UK could be vulnerable to redundancy at any minute and the first thing they will stop being able to pay is the rent – AKA your income. So we can assure you the one thing your tenant has not insured against is redundancy to secure your future rent payments.
Whilst the UK population struggles to pay the bills, the Tax Man is relentless in their quest to collecting from private landlords, where HMRC yields are up 64% from personal tax investigations in just one year.
The average cost of a tax investigation for a landlord can run into the £1,000’s, so even if you get a great tenant you may end up getting clobbered by the Tax Man if they investigate you and no matter what…
Rent Safe UK will insure you to secure all your rent payments, all your legal costs (if you need to evict a tenant) and even cover the costs for a tax investigation for just £2.40 a month