Rent arrears and how we at Julian Wadden can help you

Headlines often highlight the increasing number of tenants falling behind on rent payments due to the ongoing cost of living crisis. But let's not forget the impact this has on landlords as well. Managing mortgage payments and property repairs becomes a challenge when rental income is disrupted. And let's not even mention the headache of chasing missed payments and negotiating repayment plans.

But don't worry, it's not all bad news! In the current market, where demand for rental properties surpasses supply, we have seen an increased number of tenants applying for each property. Plus, our rigorous application process ensures we find the best match for your property.

We perform identity checks, thorough referencing, and even conduct open banking checks for a secure and seamless financial background verification. Our application partner, Goodlord, utilises open banking to verify tenant and guarantor incomes, making the process instant and hassle-free.

“The combination of the Goodlord technology and the expertise of the Julian Wadden staff helps ensure a thorough and professional pre-tenancy process. Whilst it may not be obvious, the technology that sits behind this process supports you as landlords to be compliant, assess tenants’ ability to pay the rent and allows tenants to complete the entire application process from their phone making for a greatly improved customer experience.”- Oli Sherlock, Goodlord.

This is great for a new tenancy, but what happens if my tenants do fall into arrears?

Arrears don’t and won’t impact everyone. But if circumstances did change, we’re here to help you.

Our property management team are on the case as soon as a tenant fails to make a payment. Often, the best way to a resolution is to form communication with the tenant to better understand their circumstances and reasons for falling into arrears, keeping you informed every step of the way.

Behind the scenes we work hard to ensure the appropriate process is followed to get the best resolution for you to ensure your rental income is reinstated as soon as possible.

As a landlord, protecting your income is crucial. So, how can you ensure you're covered if your tenant fails to pay rent? With Julian Wadden's Rent and Legal protection service, you can have peace of mind.

Here's what this cover includes:

1. Rent protection: If your tenant falls into arrears, you'll receive rent for your monthly rental amount.

2. Arrears coverage: You'll receive 100% of the arrears until you obtain vacant possession.

3. Legal fee coverage: All legal fees related to rent arrears, up to £100,000, will be covered.

4. Post-possession support: After gaining vacant possession, you'll receive 75% of the monthly rent for up to 2 months while we remarket the property.

5. Claim management: We handle the claim process on your behalf.

6. Coverage in 12-month cycles: Enjoy ongoing protection for your income.

Let's take Landlord A as an example. Their tenancy began in September 2022, with a rental value of £875.00 per calendar month. Arrears first occurred in month 3 of the original 12-month term. With our Rent & Legal Protection, we initiated the cover, and the landlord has been paid the full monthly rent since then.

To ensure a smooth process, solicitors were appointed to progress a possession claim, and a court attendance was scheduled. In August 2023, a possession order was granted. However, the tenant did not vacate upon the expiry of the possession order.

Through the cover, we re-appointed solicitors to apply through the courts for bailiffs. By having our Rent & Legal Protection, Landlord A estimated savings of over £10,000.00, covering tenant rent arrears, solicitor, bailiff, and court costs.

Protecting your income as a landlord has never been easier with Rent and Legal protection

Things to think about when deciding whether the Julian Wadden Rent Protection service is right for you:

• In the event my tenant can't pay their rent am I in a position to cover my monthly costs (mortgage etc)?
• With the average eviction taking over 5 months could I maintain my personal financial position with no income being generated from my property?
• Do I have access to, and can I fund, legal support in the event of arrears or any other breach of the agreement?

"Given the economic pressures on both landlords and tenants we have seen the demand for a comprehensive Rent Protection service increase. The Julian Wadden Rent Protection service, provided by Goodlord, helps provide peace of mind that in the event of a breach of the tenancy agreement you as the landlord do not incur further costs or losses.

The average rent in the UK (according to the Goodlord Rental Index) is £1,154.52 per month, at less than £30 per month the Julian Wadden Rent Protection service, protecting your entire rental income and legal protection, essentially costs less than 1 days rental income. I believe this is great value for something that is protecting one of your most valuable assets.”- Oli Sherlock, Goodlord.

Want to learn more about how we can help you? Head over to our Rent and Legal Protection page.