Help! My tenant is in rent arrears
Help! My tenant is in rent arrears
Rent arrears are currently one of the biggest nightmares private landlords are having to deal with right now.
Many tenants are struggling to keep up with rent due to reduced income and unexpected unemployment, but judging by what we are reading on various landlord forums, some may also be using the cover of the pandemic as an excuse for getting behind on payments.
Generation Rent estimate that 500,000 private renting households are currently in arrears. This is set to rise to 700,000 by November according to the London School of Economics. The rent debt crisis looks set to damage both landlords’ finances and tenants’ ability to secure places to live now and in the future.
If you’re a landlord with no rent coming in, you are going to be in a loss making position that could become untenable if it goes on for too long. This situation is made more precarious by emergency legislation that makes it very hard to evict tenants in arrears right now.
Avoiding the need to evict tenants
Getting to the stage where you have to serve a Section 8 notice is to be avoided if possible as it inevitably involves time, hassle and legal costs.
But with a combination of effective communication and use of technology, rent arrears could be kept more under control.
In what way does communication help?
Tenants are much more likely to take action if they’re reminded to do so. Plus, if you can better understand why the rent has not been paid you may be able to resolve the matter quickly. In more serious cases, many landlords have agreed affordable payment plans with tenants experiencing unexpected financial difficulty.
This is why at RentiD, we believe it’s important for landlords and tenants to have a direct relationship with each other.
So how can technology help?
Statistics show that around 90% of text messages are read within three minutes of receipt.
Meanwhile, data from PayProp who supply rent management technology to letting agents reveals that 61% of tenants with outstanding payments settle or arrange a solution within 48 hours of being reminded.
An easy, cost effective rent management solution for self-managing landlords
Such time saving automation is now available to private residential landlords via RentiD and our Manage Plus subscription.
For £12.50 per month plus VAT, you’ll get a year’s access to our Digital Assistant app (property management software) with rent management capabilities. These are powered by leading eMoney and payment provider Modulr who are regulated by the FCA and who count FinTech giant Revolut as another one of their users.
Once the details of the tenancy have been input and you’ve connected with your tenant, the app schedules automatic rent payment reminders via email and text to your tenant.
If your tenant hasn’t already set-up a standing order or direct debit, they can click on links in the email and texts to securely pay their rent into the digital wallet assigned to your property which has its own sort code and account number. Each of your properties gets its own digital wallet which acts like a client money deposit account that is controlled 100% by you.
From within the app you can see across your portfolio the status of your rent payments in real time and using a simple ‘traffic light’ system.
What rent is coming up? Have the automated reminders gone out? Has the rent been paid? Is the rent late?
By automating these processes, your workload is reduced and no tenant is forgotten or reminded to pay when they shouldn’t be.
Help! My tenant is in rent arrears. Let RentiD take the strain of rent management off you today
RentiD Manage Plus is £12.50 per month plus VAT (£180 incl. VAT for the year).
Save 20% by paying upfront (£144 incl. VAT – the equivalent of £10 per month plus VAT).
Register an account today for free and then subscribe to benefit from this powerful, time saving automation once you are inside the app.
For more information on RentiD Manage Plus click here.
Help! My tenant is in rent arrears – with RentiD you can take back control.