The British people are stressed out as a result of the cost-of-living crisis, with many people concerned about how they will survive the winter due to rising heating costs, gas prices, and grocery prices. In fact, 80% of tenants are concerned about how they will pay their rent due to rising rent costs and financial worries.
Rent arrears are thus unsurprising to be the landlords’ primary concern right now. However, it is not required. The cost-of-living crisis is expected to last until 2023, but landlords can start preparing themselves and their tenants for the difficult months ahead right away.
TIP 1 – EXAMINE THE COST OF VARIOUS UTILITIES
Other contract renewals, such as those for broadband and home insurance, can also help you save money in other areas, even if they are not directly affected by rising gas and electricity prices. Examine the remaining contract terms and keep an eye out for special offers or lower prices that can help you and your tenants save money whenever possible.
TIP 2 – ENSURE A GUARANTOR IS PRESENT FOR YOUR TENANTS
Guarantor services are still new in the UK, but they can provide tenants with more security by providing an alternative to traditional guarantors such as parents or relatives. This alleviates some of the financial strain on the tenants while also protecting the landlord’s investment. Real estate brokers and landlords should work together to weigh the benefits and drawbacks of personal vs. professional guarantors.
TIP 3 – IMPROVE THE ENERGY EFFICIENCY OF YOUR FACILITY
The government intends to raise this to a C or higher, which could take effect as soon as 2025. Law currently requires only an EPC rating of E or higher. While there may be an initial cost to improving your home’s energy efficiency, you may be eligible for incentives that lessen the blow. Making these changes now may result in additional long-term savings because the upgrades will most likely be required sooner rather than later.
TIP 4 – BE KIND TO YOURSELF AS YOU GO THROUGH THE NEXT FEW MONTHS
The coming months will be difficult for millions of people in the United Kingdom, and many are already concerned about how they will survive. Be open to communicating with your tenants and considerate of any issues they may be experiencing. Inform them that you will assist in any way you can and that their rent will not be increased unnecessarily.
TIP 5 – FOR PRICING INFORMATION CONTACT YOUR ENERGY PROVIDER
If you own “all expenses paid” properties as a landlord, you should contact your energy provider to learn more about your current plan. If you are lucky enough to have a contract that is about to expire, shop around for the best deals. Individuals whose renters handle their own bill payments have the legal right to choose their own energy provider. Open a conversation with them about the changes you want to make if they took over the services from you or a previous renter, as they may be unaware of them. This will not only demonstrate greater concern, but it may also allow them to ensure they have enough money to cover their rent.