Money Speaks

It’s that time of the month, and once again all your tenant has is apologies and excuses. You sympathise, but sympathy won’t buy the buy to let mortgage. One needs to know when to cut their losses.

It’s happened many times, more so since the recession; your tenant is in touch, informing you that they can’t make a full rent payment. Knowing what to do with a situation like this can be tricky, and is best judged in stages.

If you are privately advertising your buy to let property, make sure you are through with your checks before giving the tenant the keys. Once the tenant is in, maintain contact. Be careful, as you do not want this to be perceived as harassment by the tenant. Just touch base once a month or bimonthly, and find out how the tenant is getting on. That way, if their financial situation changes, they won’t be so afraid of approaching you to resolve the matter.

Hearing you won’t get your money can be hard, but try to work with the tenant to establish a reasonable way of paying back the debt. Find out why the tenant is struggling to pay, and what action they are taking to get back on their feet.

If the debt escalates, and your buy to let investment is starting to look in jeopardy, contact your solicitor immediately, or seek advice online to look at diplomatic alternatives.