Landlord Stories: Never Solely Rely On Your Rental Income To Pay The Mortgage.

Hi guys,
The tenant, a single gentleman with no family, had been in the property for 12 months and had always paid the rent on time and in full, he had been the ideal tenant. His tenancy was renewed and he signed a further 12-month fixed term tenancy, peace of mind for both Landlord and Tenant?! Unfortunately, at month 14 the tenant had a terrible accident on his way to work which resulted in debilitating injuries that meant he would be unable to work for quite a considerable time.
The tenant was hospitalised for a couple of months, which delayed his application for housing benefit, once he did get his claim in the local council had an eight-week backlog in dealing with the claims. By now, although the Landlord was very sympathetic to the tenant’s plight, he was now missing nearly 4 months rental income and had himself then been unable to meet the mortgage commitments on the property, as he was solely reliant on the rental income to cover the mortgage payments.
The tenant tried to get re-housed with the local authority, but due to the lack of available authority properties, he was told to sit tight and wait until the Landlord had obtained a court possession order. (That’s right the council effectively told him to screw over the landlord) The average time to get a possession order through the courts can be between 2 – 4 months depending on locality and how busy the Courts are at that specific time. The average cost can be between £400 – £700.
Several months later the possession was granted and the tenant was re-housed but unfortunately, the mortgage company had also commenced possession proceedings and the Landlord lost his property.
Now sure this happens very rarely but the lesson is that you should Always ensure you have sufficient funds you can call on in the event of such circumstances (we call this a provision) or you have a good Rent and Legal Insurance policy in place.
Any questions please call the team on +44 (0)1522 503 717 and we’ll be happy to help with anything.
Yours in Effortless Property Management,
Arlene Alegre-Wood