Over a third of landlords have had trouble with abandoned properties
As one of Cardiff’s largest letting and estate agents, we can offer our landlords near year-round tenancy of their properties, but landlords in other cities across the UK aren’t as lucky, which has been reflected in some concerning figures surrounding tenants abandoning properties.
In fact, according to a new research study, 36% of UK landlords have experienced property abandonment!
What is an abandoned property?
A property is considered abandoned if a tenant moves out of the property during the period specified within the tenancy agreement without first informing the buy-to-let owner. This usually goes hand-in-hand with a tenant owing the landlord outstanding rent. This can lead to a landlord losing out on a large amount of their yearly earnings. So, it’s worrying that over a third of UK landlords have experienced this growing problem.
What makes matters worse is that while the tenancy agreement still stands, the tenant has the legal right to return and occupy the property, and a landlord is breaking the law if they are seen to be preventing the tenancy from continuing. The only option this leaves landlords with is to go through the eviction process, which can take several months to be completed. It is clear then how much of a negative impact an abandoned property can have on a landlord’s finances.
England is the best and worst for abandoned properties
The north east of England has the highest UK average for landlords who have experienced abandoned properties, with 58% of landlords saying they have had experience with this problem. This average for the north of England in general is high with 51% of landlords having to deal with an abandoned property at some point.
Landlords in the south west of England experienced the lowest average with 31%, while the average in London is 33%.
The Housing and Planning Act was recently brought into law, with legislation that is designed to make it easier for landlords to deal with the problems caused by an abandoned property and the recovery of these properties, however these changes only affect landlords in England.
The act also gives tenants peace of mind by creating stiff civil penalties for any landlords found breaking the law.
Rent Guarantee Insurance
At CPS Homes, we understand how important receiving rent in a timely manner is to our landlords, that’s why we offer rent guarantee insurance to landlords as part of our Full Management Service.
Rent guarantee insurance protects buy-to-let owners against loss of rent even if a tenant abandons a property, meaning our landlords are never left out of pocket. We professionally credit-check our tenants as standard as part of the tenancy arrangement process, which means our tenants qualify to be covered by the insurance, so there are no nasty surprises down the line!
The cost of our rent guarantee insurance is a 50% letting fee (payable each time new tenants are signed on for your property) and a 12% management fee for the first year of instruction (payable when rent is collected each month). All costs are subject to VAT.
This is on top of our service to chase up rent arrears, which we offer as part of our fully managed and rent collection services!
If you want to give yourself peace of mind and make sure that you receive rent each month, even in the case of an abandoned property, then contact us today to find out more about our property management services which we offer to Cardiff landlords. Email us at: enquiries@cpshomes.co.uk, or pop into one of our branches in Cathays, Roath and Cardiff Bay.
