50,000 Job Losses Forecast for the 1st Qtr

Latest Landlord News by: Madalena Penny

Increase in LHA Tenants

With 2.5 million people currently unemployed and the figure expected to rise through the year due to public spending cuts, for landlords it’s relatively likely that they can also expect a rise in the number of tenants in receipt of housing benefit.

The Chartered Institute of Personnel Development (CIPD) have forecast a further 50,000 job losses from the public sector in the first quarter of the year.  With 4.7 million claimants already receiving housing benefit, the number of which, is set to rise.

This gives landlords a choice……to accept DHSS and claimants of housing benefit or not?  Obviously, the infamous direct payments to tenants of LHA is a sore point for landlords but there are some significant methods and products on the market to lessen the risks to landlords, ensuring less likelihood of incurring rent arrears.

Legal 4 Landlords always advise on LHA tenants securing a tenancy with a rent guarantor.  Guarantors as well as tenants should comply with the same strict tenant referencing.  L4L apply a fixed fee service for all tenant reference checks, with a Guarantor Check priced at only £25.  Their Rent Guarantee insurance is another nifty service, which they have adapted to suit the current market and the landlord’s pocket alike.

Another good method of ensuring your getting a reliable tenant is to visit them at their existing address.  Coupled with tenant referencing, landlords can ascertain that their potential tenant is who they say they are and can see the environment by which they set their standards.  This is a good method to apply to any tenant and it’s worth mentioning it to your letting agent if you have one and perhaps request if they can supply this service for you.

Independent landlords can take some security from services offered to protect them from unforeseen circumstances by arranging tenant referencing through Legal 4 Landlords, including a fast-track full reference check.  Letting agents can also use the L4L service thus offering their landlords and property investors the same level of protection and insurance products dedicated to landlords and some great insurance for tenants’ contents.

To find out more, contact Legal 4 Landlords direct at one of their 20 nationwide offices on 0800 840 7133 or visit their website at http://www.legal4landlords.com