If you are a landlord in 2021, you might be experiencing some issues. The coronavirus pandemic has forced many people out of work, putting strain on tenants who are bound into rental contracts. But of course, the situation has been hard on homeowners too; mortgage payments are still due, and if tenants can’t pay, this creates a difficult situation for everyone.
If you are a buy-to-let homeowner or looking to become one in 2021, here is your definitive guide to navigating this difficult financial period. Let’s get to it!
Coming To An Arrangement With Tenants
Tenants have struggled during 2020 and into 2021. While they made a legal commitment to pay rent for an allotted period, nobody could have predicted how a pandemic would devastate people’s personal finances and employment situations. Plus, those who can access Universal Credit are still bound to be far worse off in this position than if they were working full time.
As a landlord, your position is simple: you also have a mortgage to pay, and you can’t grow money out of thin air. However, evicting your tenants will not solve this issue: then you’ll have no tenants to potentially pay rent for a long time, leaving your mortgage still unpaid. So what should you do?
It is time to knuckle down and come to an arrangement with your tenants. If both parties behave reasonably, you can come to a partial payment arrangement, or suitable arrears. This is a far more lucrative situation for all involved, so if an agreement can be met that suits both parties at least partly, it is better to go down that route than the route of eviction.
If you do feel you need to evict tenants, make sure to hire reputable enforcement agents to handle the situation sensitively but firmly. You will need grounds in order to evict tenants, so it is important to discuss this with a lawyer before proceeding.
Can You Really Afford This?
If you are looking to buy a home in order to let it out, consider if this is the right time for you. Investing in property is a long-term process that requires lengthy thought and extensive research of the area before diving in. Property in the UK is still selling reasonably well, but due to the COVID-19 and Brexit occurring simultaneously, the housing market is likely to be volatile.
Plus, we have no idea truly how this pandemic is going to pan out. While vaccinations are taking place around the world, nobody can say for sure how the ramifications of COVID-19 will affect us long-term. If you are looking to invest in property but are on a tight budget to do so, think very carefully about being able to afford this venture right now.
If you are considering a buy-to-let investment, make sure to use this guide in order to properly assess all potential risks. Being a landlord is a great way to make easy money, but in this day and age, further considerations are required to see if this is a sensible choice for you.