The last 10 years has seen an increase in the Private Rented Sector (or PRS) of the housing market and, with it, a new set of challenges for developers and landlords. We explain the changes in the market and what to do if, like many Brady Solicitors clients, you are faced with similar challenges.
The increase in the Private Rented Sector is largely due to households being priced out of home-ownership, particularly in urban areas. Whilst this is good news for PRS developers and landlords, who benefit from extra revenue streams in the form of tenancy renewal fees, we are seeing an increased number struggling to recover these fees from their tenants.
According to Savills research, growth in the proportion of PRS households between 2001 and 2011 in both the Midlands and England as a whole was circa 6%. The private rented sector plays a vital role in our housing market, providing a flexible option for millions of people across the country.
PRS empowers tenants to agree longer deals with their landlord, but also avoids the need for landlords to leave properties empty and pay fees to letting agents for finding new tenants, making it a much more stable environment for both parties than traditional rental agreements. It also allows landlords to impose renewal fees on their tenants for the added security.
But what happens if you run into difficulties collecting these fees from your tenants?
Brady Solicitors has seen an increase in the number of PRS landlords struggling to recover tenancy renewal fees from their tenants, probably due to the increase in PRS properties, and this has lead to dented cash flows.
Non-payment of renewal fees can be down to a number of reasons and it’s important to understand why your tenants are not paying in order to take the correct action to recover them. Our debt recovery specialists work solely in the property sector and our skills have helped numerous clients recover the fees owed from tenants, often within bespoke cost models.
Debt recovery for the Private Rented Sector
If you are a PRS landlord or developer and need a bit of extra support recovering renewal fees to keep your cash flow on track, our debt recovery experts would be pleased to assist you. Contact us here for further information and a friendly chat.