The Government’s Tenant Fee ban has several implications for Landlords and one of our biggest concerns with the legislation is its potential impact when it comes to chasing rental arrears.
The new Tenant Fee Act 2019 prohibits penalty charges to Tenants for late payments and rental arrears, other than a default charge of 3% above Bank of England interest.
In real teams, this means that if Tenants fail to pay their rent, the penalty to them under the new Act will be just £1.24 per month in late payment fees (based on the average rent). This is not much in the way of a deterrent and, as a consequence, could lead to an overall increase in rental arrears.
To mitigate this risk to our Landlords, we have sourced the best available policies and utilised our buying power to provide our clients with great value, high quality rent protection cover.
Rent on Time
Available exclusively for our Premium Managed landlords on new Tenancies, our comprehensive Rent on Time service means that you are guaranteed to receive the rent on time and in full every month, regardless of whether the Tenant pays or not.
Specifically designed for Landlords to protect from loss of rent, damages and legal cover, Rent on Time gives you everything you would expect from a normal rent guarantee policy, with the additional perk of making sure you receive your rent-on time and in full no matter what.
- The rent is collected from the Tenant by Direct Debit but the Landlord receives the rent on time and in full EVERY month on a specific date, regardless of whether the Tenant had paid on time, or at all.
- Should the Tenant fail to pay the rent, the service will take complete care of the eviction process, including all legal and financial aspects
- If the Tenant has damaged the property, you will receive 50% of the rent for up to 3 months after eviction whilst the property is being refurbished.
Rent Protect covers Tenant arrears, eviction costs, legal expenses up to £50,000, and is available on Managed Tenancies. For a small monthly charge, the Rent Protect service will provide:
- £50,000 cover
- Nil Excess to Pay
- Rent Paid until Eviction
- Full Legal Expenses
- Pursuing through Courts
If you would like to take advantage our new rent protection services on your next Tenancy, please contact your Property Manager or Branch Manager for more details.
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