Tag Archives: Guaranteed Rent

Cardiff Tenants Choice: Rent or Food as a Fifth Cardiff Food Bank Opens

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Cardiff tenants and homeowners have to make some important decisions each month but one decision that is occurring more frequent is the choice to pay the mortgage and rent or put food on the table.

Cardiff is to get its fifth food bank to meet the rapid rise in demand, last year Cardiff Council said 7,500 people received emergency food parcels a figure which is set to increase by 20 per cent to 9,000 people this year.

The latest food bank to open its doors in Cardiff is at St Saviour’s Church in Splott. This is the first food bank in Wales to offer evening opening hours to help the growing number of the Cardiff population who are in full-time employment who rely on the help and support of food banks.

Lord Mayor of Cardiff, Cllr Derrick Morgan said, “In a climate of worsening poverty and rising homelessness, Food banks and their network of support services are becoming ever more necessary.”

Father Dean Atkins, Parish Priest of St German with St Saviour, said,”It is clear that there is a need for this kind of support in the local community and I believe the Church has a responsibility to try and meet that need.”

With zero hour contracts and economic growth fuelled by debt the reliance of food banks in Cardiff looks like a trend that will continue to grow.

From a tenants perspective the question of paying the rent or putting food on the table looks like a question that will become ever more frequent in household across Cardiff and South Wales which will have a knock on effect to landlords.

If you are a landlord in Cardiff and would like to hear how Rent Guarantee Cardiff can eliminate the stress of rent arrears and void periods while receiving a guaranteed rent up to 90% of the open market rent with no set up fees and no management fees, please complete the contact form below:

Cardiff Landlords Can Your Tenant Pay the Rent If They Are Made Unemployed?

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Cardiff landlords can your tenant pay the rent if they are made unemployed?

Unfortunately if your tenant is one of the 3.8 million households across the UK then chances are they can only pay their rent or mortgage commitments for a month after losing their job. Research by YouGov has found that almost four million households are just one payday from losing their home. An even more worrying statistic for landlords is the fact that 29 per cent of family’s 2.4 million households would face immediate eviction as they had no savings at all.

How can Cardiff Landlords Protect Themselves?

There are several options for landlords across Cardiff and South Wales to protect their property investment against rent arrears and voids periods. The first option is to purchase Rent Guarantee Insurance (RGI) which requires tenants to undergo and pass an in-depth credit reference and employment reference procedure. As with any insurance policy you must understand the T & C’s and there will be an insurance excess to pay, so landlords must keep money set aside to cover void periods until the Rent Guarantee Insurance (RGI) pays out.

A second option is to speak to a Rent Guarantee provider such as Rent Guarantee Cardiff; we provide landlords in Cardiff and across South Wales complete peace of mind by guaranteeing their rent for a set period of time, ensuring landlords receive their guaranteed rent on the same day each month with no set up costs or management fees. Unlike other rent guarantee providers who offer 70-75% of open market rent as a guarantee, Rent Guarantee Cardiff offer up to 90% open market rent.

Rent Guarantee Cardiff unique business model enables us to guarantee up to 90% open market rent, enabling Cardiff landlords and property investors to achieve a 20% increase of their rental income compared to using a traditional letting agent.  Plus you will never need to worry about evictions and legal costs, we cover that with at no extra cost.

If you are a landlord in Cardiff or other areas of South Wales and would like to discuss how much guaranteed rent we can offer you, please complete the short form below to receive a call from us:

Guaranteed Rental Scheme Case Study: Helping with Negative Equity

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Our guaranteed rental scheme has benefited a number of Cardiff & South Wales property owners with negative equity.

This case study highlights how a young Cardiff couple with help from our guaranteed rental scheme were able to move up the property ladder while keeping their existing property.

Background

We were contacted by a professional couple in 2011 that had a 2 bedroom house located in the Pontcanna area of Cardiff.  The property was in negative equity, but they had recently inherited money and had agreed the purchase on their forever home at a bargain price.

Their plan was simple, to purchase their dream home at what they perceived a bargain price while rent out their existing home which was in negative equity and wait for house prices to recover to release equity or dispose of the property.

The couple had no experience of being a landlord, finding tenants or property management experience, and coupled with the added financial burden of a second larger mortgage wanted the security of a guaranteed rental scheme, with no void periods or tenant hassle.

The couple had invited several local Cardiff lettings agents to provide a rental appraisal so had a clear understanding of the rental market and the rental income their property could achieve so were pleasantly surprised when we provided them with a competitive guaranteed rental income to be paid on the same day of each month, with no set up costs, tenant finder’s fees or management fees.

 Guaranteed Rental Scheme Process

As the Cardiff property in Pontcanna was on a residential mortgage we advised our client to obtain permission to let as well as advising them to obtain landlords insurance, a Gas Safety Certificate and an Energy Performance Certificate (EPC).

Once all the required documentation was in place a commercial contract for our guaranteed rental scheme was signed by both parties, highlighting any circumstances which may result in a breach of contract by either party, the responsibilities of both parties as well as the amount of guaranteed rent and the date on which it will paid each month.

Once the coupled has a confirmed completion date on their house purchase a date was agreed for when our guaranteed rental scheme would commence.  In the mean time we actively marketed our client’s property on major internet portals such as Rightmove and Zoopla, conducted viewings and fully referenced suitable tenants including credit check, employment references and previous landlord’s references at no cost to our client.

Prior to our client handing over the keys to their house a detailed inventory was carried out including photographs with our client present, to ensure they were 100% happy with the condition of the property at the beginning of the Guaranteed Rental Scheme and also at the end of the process before the property was handed back to them with vacant possession.

The tenant selected was an anaesthetist working on a 2 years secondment at the University Hospital Wales and was provided with a 6 month Assured Shorthold Tenancy (AST) agreement, once again a detailed inventory was conducted, a deposit was taken and logged with The Deposit Protection Service (www.depositprotection.com) and Prescribed Information and Terms of Business of The DPS all served within the required 30 day period therefore insuring both our Guaranteed Rental Scheme and our landlord client is legally compliant.

If you would like to find out more about our Guaranteed Rental Scheme please complete the form below to receive a call from one of the team: