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

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:

Eliminating rent arrears caused by tenants using credit to pay the rent

Eliminating rent arrears caused by tenants using credit to pay the rent

Research conducted by the Debt Advisory Centre has highlighted an alarming trend of UK adults borrowing money via credit cards and payday loans to pay their rent and mortgages. The survey found that 6.5% of adults have used some sort of credit or loan to pay the rent or their mortgage, what is even more worrying is the fact that this figure has double since August 2013.

The research also delves deeper as suggests that men are twice as likely as women to use credit to meet their rent or mortgage commitments and the figure rises to 10%, one in ten UK adults aged between 18 and 34.

Spokesman for Debt Advisory Centre Ian Williams said: “There is nothing more important than the roof over your head, so to learn that so many people feel they have to rely on credit to pay their mortgage or rent, and that this figure has risen, is extremely troubling.”

With credit card interest rates at around 30 per cent per annum and payday loan lenders charging thousands of per cent per year, it isn’t long before tenants relying on credit to pay their monthly rental commitments are able to pay and fall into arrears.

With the trend of tenants using lines of credit to pay the rent on the increase how can landlords across Cardiff and South Wales eliminate rent arrears?

An easy way is to contact Rent Guarantee Cardiff to discuss how we can guarantee your rental income ensuring the following:

  • You get paid your rent on the same day each month whether the tenant has paid or not
  • You receive your rent on the same day each month whether your property is tenanted or vacant

Rent Guarantee Cardiff is a specialist Cardiff Lettings Agency that provides all the same services as a traditional Lettings Agent but with no set up fees or management fees and we can pay up to 90% of the open market rent.

To discuss how Rent Guarantee Cardiff can offer you up to 90% open market rent and increase your rental income by at least 20% compared to a traditional Cardiff letting agent, complete the form below:

Guaranteed Rental Scheme Case Study: Helping with Negative Equity

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: