The early bird catches the worm, and the early landlord gets the best value out of their rental properties.
The quicker one acts to sort out rent reviews, lease renewals, dilapidation surveys and credit control, the better it is for everyone, including tenants.
Rent Reviews and Lease Renewals
It makes sense to do this as far in advance as possible to get the best rent value.
The closer one gets to the valuation date then the more likely it is that unfavourable comparable evidence will come to light, forcing the rental value down.
If the review date is set too late then the tenant may struggle to pay any arrears. So dealing with these matters without delay means you get the maximum rent, but the tenant’s ability to pay is not compromised.
Dilapidations
Dilapidations should not be put off, and need to be attended to well in advance of the end of the lease.
Plenty of time should be allowed to have the property surveyed so that any dilapidation or repair notices can be served, and any necessary repair work can be completed.
Credit control
Landlords always need to use intelligent credit control, but this is even more important during times of economic recession.
You need to be able to recognise when a tenant is unable, rather than unwilling, to make payments, and only make appropriate concessions if all else fails.
Concessions should only be bought in if the tenant is likely to fail and the prospect of marketing vacant property is slim.
Do not allow arrears to build up with tenants as this makes it more likely that they will not pay monies in the future.
One must take extreme care when entering new arrangements with a tenant where there is a guarantor or previous tenant, as a failure to document these arrangements in the correct way can mean a previous tenant can escape payment.
It should also be noted that Section 17 Notices under the Landlord and Tenant (Covenants) Act 1995 must be served in good time to ensure the landlord maintains their ability to collect arrears from previous tenants or guarantors.
To find out more about how we can help you, please contact Carvill & Johnson in Northfield, Birmingham.
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