Rent not Paid – Part 1
Rent not being paid on time is one of the biggest concerns for property owners. A few days back, Paul, a landlord, had the following conversation with a property investor, Karen.
Paul (landlord): My tenant has not paid the rent, again.
Karen (property investor): This is the third time, I think?
Paul: Yes. What is more, he admits he will not be able to pay before two months.
Karen: Why do you not evict him? The AST period is about to end. You can have a Section 21-b notice served.
Paul: I know. I have served him the notice. But that does not solve the problem.
Karen: Why not?
Paul: First, I am tired of managing this property. I am new to property investment, and I am not an expert. I have not been able to find the right tenants either. I think selling the property would be the right thing to do, even though I was planning to invest in a few more properties and build a proper investment portfolio.
Karen: Have you tried tenant finding services? You can also hire property management services. That way, you can bring in rents without grappling with the problems of being a landlord.
Paul: Tenant finding services don’t guarantee right tenants every time. I have not found a satisfactory property management service. Until that happens, I am stuck with managing the property and tenants on weekends and after work.
Karen: Why don’t you sell the property?
Paul: That is the second problem. The property carries a negative equity on it right now. I thought the lease would help cover the deficit, but with rents not paid, I don’t see how that is possible. Unless I can get another ₤30,000, I won’t be able to sell the property.
Karen: It seems you have two problems on your hands. First, you are unable to manage the property and find the right tenant. Second, you are unable to sell the property because your property carries negative equity and you don’t have the money to repay your mortgage.
Paul: That just about sums it up.
Karen: Why don’t you try Property Lease Options?
Paul: I have heard other property investors mention it. Does it have anything to do with leasing with a view to buying the property later?
Karen: You are right. It offers a win-win situation for the landlord as well as the tenant. It is a pity so few landlords are aware of it, particularly those whose tenant has not paid the rent.
Paul: How do I find the right tenant through Property Lease Option? How will it help me deal with negative equity? Will it really help me make a profit on my property investment without having to spend 24 hours a day managing the property? What about problems such as rent not being paid?
Karen: Let me recommend this great e-book to you. It’s been published by UK Property Ladder, and has all the information you need about Property Lease Options.
Paul: Does it really cover everything I want to know?
Karen: If you are not convinced, why not read a free chapter from their e-book first? You can find it at this Web site: