This week’s article feels a bit like doom and gloom. Please don’t see it that way. But we need to know, have you thought about what you would do if your tenant struggled to pay their rent?
Across the country (and this includes Lancaster and Morecambe) 3 in 4 renters are concerned about their ability to pay their rent, mainly due to the cost of living crisis. People are struggling already and we have not even hit the Autumn / Winter months when we will all be using more electricity as the days get darker and the heating will get switched back on.
Rents account for an average of 30.5% of a renter’s gross monthly income (up to 34% in London). Bills are going up. Food costs are going up. Fuel has already rocketed. What will they give up or stop paying first?
The concern is greater in the Generation Z age group (18-25), there was only less than 5% which stated it wouldn’t have an impact. Over a 1/4 of this age group saw it as a serious concern.
Inflation now stands at 9.1% which is already a 40-year high and it’s predicted to get worse. Sacrifices will have to be made by people and no doubt that will start with lifestyle changes. At JDG though our job is to make sure our landlords are protected. We need to make sure that you are getting your rent.
This all starts with our in-depth vetting procedures, affordability and credit reference checks. We also recommend that our landlords take out a landlord insurance policy which protects them should their tenant can’t / won’t pay their rent for any reason including illness (our policies also cover Covid).
If you would like to chat this through or talk about how we find the best tenants who will not just pay their rent but also take good care of your property, please get in touch. At JDG we are always here to help!
Call us on 01524 843322
Thanks for reading
Josh