At a time when lockdown rules have seen numerous employees lose some or all of their income due to being furloughed or even losing their job, research suggests the number of rents that are being paid late has risen by only a small proportion. That means that even though times are tough for many UK residents, the vast majority are still managing to pay their rent or have come to an agreement with their landlord.
Investing in a buy-to-let property is a big commitment, but one that pays real dividends - literally. This week we are going to take a look at some of the things one should consider when investing in a rental property, from financing to the type of tenants you are targeting.
A recent report suggests that rather than slowing down in the second half of the year, which is typical for the UK's lettings market, it's possible it could gain pace and 'explode quite quickly' once there's more certainty and lock down measures are eased and eventually removed.
In light of the ongoing situation with Covid-19, and an increase of furloughed workers, it has become pretty evident that some Landlords/Estate Agents are not as clued up on the system as they would have us believe. However, with them now having to face the chance that their tenants may not be able to pay rent, it is a better time than ever to separate the facts from the fiction.
While it’s great that the UK Government is proving to be supportive and encouraging towards financial forbearance during the Covid-19 pandemic, it’s essential that landlords and letting agents manage the situation carefully to avoid difficulties in the future.
Where rent payment holidays are agreed or other informal changes between landlords and tenants arise, a system must be put in place to help closely monitor, manage and record exactly what should be happening right now. It’s also important to have an eye to the future and have clarity on when and how any payment holidays or temporary rent reductions are repaid.
As the country settles in to lockdown and the idea that returning to 'normality' is months away, the Government has issued updated guidance for landlords and tenants. They include clarification on paying rent, confirmation that eviction notices shouldn't be pursued unless it’s absolutely essential and that urgent repairs and maintenance should still be carried out.