As county court judgments soar by 35% rent guarantee demand increases | Discuss

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As county court judgments soar by 35% rent guarantee demand increases
18/05/2017
1:14 pm
News @ Tenant Referencing
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New figures released this week highlight the growing concern over rapid increases in household spending over the last 2 years fuelled by extra borrowing, especially across the UK’s private rented sector.

The alarming statistics collated by the Registry Trust reveal that nearly 300,000 debt judgments have been filed against individuals in England and Wales in the first three months of 2017, which equates to a 35% rise compared with the first quarter of 2016; the highest quarterly figure for more than 10 years.

So as anti-poverty charities, the Bank of England and MPs continue to warn about the dangerous levels of high consumer debt, it’s feared that debts could worsen even more this year as rising inflation coupled with slowing wage growth eat into household finances.

As well as notable increases in lending from banks, car leasing companies, credit card firms and shops offering interest free-credit, another study published this month has shockingly exposed that one in three private renters on low wages are being forced to borrow money just to keep up with their monthly rental charges.

The research carried out by housing charity Shelter has found that 800,000 households across the UK are unable to save even £10 a month due to the toxic mix of low wages + the cost of renting, with 1.3m households privately renting struggling to make ends meet after they’d paid for the roof over their head; using credit cards, taking out loans and even asking loved ones and friends for cash just to get by.

Shelter have now called on the new Government to build half a million new affordable homes for rent, stating ‘It just isn’t right that so many hard-working private renters are having to take on desperate or dangerous debts just to keep a roof over their heads.’

Couple this with the fact that 5.5m working adults would not qualify for full housing benefit if they were to lose their job, more than doubling in a decade from around 2m at risk in 2003/04, it stands to reason that an increasing amount of private landlords around the UK are now understanding the importance of obtaining a robust rent guarantee insurance.

Wise PRS landlords are now employing RGI as an effective strategy to reduce these risks.

(As a landlord) If you manage to house a non paying ‘professional’ tenant, before long your bills can be astronomical. Gain an understanding of the possible cost of this by adding up eight months rent minimum (it takes most Landlords at least 2 months to decide to evict), add court fees, bailiffs fees, your time, stress and energy. Don’t forget to add in the out of pocket expenses such as damage to the property, removed boilers, copper piping amongst a whole host of other damage that can be done. Environmental health visits and other activities can also delay the process by at least 12 months.

Having protection against this, in association with LandlordReferencing.co.uk’s unique Tenant History Reports, is one of the best methods of insuring against misfortune and potential bankruptcy.

So please have a look at the various RGI products we can offer you via rentsafeuk.co.uk today.

Related topics:

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19/09/2017
11:38 am
Jill
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https://www.theguardian.com/business/2017/sep/18/britain-debt-timebomb-fca-chief-crisis

These credit companies show no responsibility and encourage tenants to get into debt.

“StepChange highlighted young people and renters as increasingly vulnerable, with many needing to borrow to cover the most basic everyday bills.” = all the more reason to obtain Rent Guarantee I say! Cool

09/01/2018
10:17 am
Scooby456
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I recently had a case that showed the true power of your rent protection insurance. To cut a lonnnnnng story short I told the tenant I would take them to court and that they would eventually pay for the rent arrears owed + extra in court costs, bad credit score, etc, etc. This persuaded them to pay before the tenancy ended, so I didn’t even have to put a claim in! Thanks Rent Safe and Tenant Referencing, what would landlords do without you?! Cool

10/01/2018
10:31 pm
lister14
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One of my landlords has a live claim with LRS RGI and their service is excellent. They paid the rent arrears in just three weeks, and said they will continue to pay the rent if the tenant does not pay. They instructed a solicitors and they are now serving the correct notices and will if necessary do all the court work. All this for £100.00.

It took me a while to convince this Landlord ( an old hand and said I never had a bad tenant) to take out the RGI but he is very happy that he did and has forgiven me for pestering him to do it. The lesson here is all landlords should where possible try and get RGI, it the best £100.00 you will ever spend if things go wrong. It goes to show even with the best referencing things do sometimes go wrong.

Contact http://www.landlordreferencing.co.uk for adivce on RGI

28/02/2018
1:59 pm
Patricia
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Is there any insurance that covers a tenant in my HMO that pays his ( recently recalculated himself ) reduced rent ? He has become increasingly really rude and arrogant towards the other tenants  and myself over the last few years   He became a tenant many years ago  and i decided -enough is enough.  If there is an RGI that covers that , i will gladly take it out next time. I have RGI on other tenants but not this one. 

I used a solicitor to start proceedings to evict him .I now have have a court order for possession and costs. He will not move and will not pay court costs .  My solicitor is now instructing the bailiffs. He wants his deposit back and extra for rent he overpaid after he received his court order to move.  His own solicitor told him that he should carry on paying a reduced rent until he is evicted . He wants the deposit and repaid rent before he moves out or gives me the keys.  I am not doing that . 

I will not take any tenants  that say they have come from home,  or i cannot get an account of their life styles. . He will not get a good reference from me and he is registered as my tenant on LRS. 

01/03/2018
10:04 am
Kenn
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Good morning Patricia,

With your current situation as you know the difficulty with any Rent Guarantee insurance products is that the terms and conditions on any policy will specify that it can’t be taken when there is an outstanding issue with the tenancy. 

However moving forward the policies through RentSafeUK.co.uk are valid against HMOs just like whole buildings but they are on an AST basis and wont cover communal areas as there is often a dispute as to who caused any issues.

Therefore several of our customers take them on a per room basis. If you would like more information feel free to give us a call. 0800 9994 994 Laugh

01/03/2018
4:22 pm
Patricia
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Kenn said
Good morning Patricia,

With your current situation as you know the difficulty with any Rent Guarantee insurance products is that the terms and conditions on any policy will specify that it can’t be taken when there is an outstanding issue with the tenancy. 

However moving forward the policies through RentSafeUK.co.uk are valid against HMOs just like whole buildings but they are on an AST basis and wont cover communal areas as there is often a dispute as to who caused any issues.

Therefore several of our customers take them on a per room basis. If you would like more information feel free to give us a call. 0800 9994 994 Laugh  

Thank you for your reply. 

Its the first time i have served a S21 against a tenant . Usually difficulties have been sorted out quite amicably. 

I have used RGI before for many of my different tenancies and i understand  that it has to be taken out at the same time as the contract is drawn up etc. .

RGI is for covering rent arrears?  

In my case we have not applied for rent arrears because the tenant has not, until the Solicitor advice,  been in arrears. I am considering  -for new future tenants,  to use the RentSafeUK.co.uk    insurance legal services even though we are not taking up rent issues. An insurance that would take a lot of the legal solicitors hassle away from the landlord in cases like this sounds perfect.  

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