With levels of personal debt rising inexorably and interest rates on the increase, you should take steps to safeguard yourself as far as possible from the effects of a tenant’s potential financial problems. Be alert to any signs of trouble, such as a missed instalment of rent. This is where keeping in contact can pay dividends.
If your tenant does have money troubles, don’t panic – and be understanding. An arrangement whereby you agree to accept less rent for a couple of months, until the tenant is able to pay the arrears, can benefit both parties. The tenant has a chance to sort out his or her affairs, while you have at least some money coming in.
Insurance is now available to cover rent lost through missed payments, and expenses resulting from legal action against a tenant.
With thanks to BuyAssociation.
