30th July 2016
Over the next few weeks we will be looking at rental issues, which come up in the process of investing in property. In the first article of this series we will be looking at the serious issue of subletting, which may mean short term gain but might mean long term damage to the property.
This is particularly an issue where the properties are sublet in order to satisfy low income tenants.
One particular instance of this was when I was asked to source a tenant for a property on a tenant find service, not a fully managed service. The tenant we found was referenced and passed the referencing stage and therefore secured the tenancy.
Sometime later I was informed there were 12 people living in the property and the original tenant never moved in.
This resulted in damages of £5,000, and eviction costs as well as a void period.
This situation could have been avoided with regular inspection, under a managed service.
This third party not only caused damages but made around £28,680 in profit! The landlord in this situation was only charging £15,000.
Multi lettings can be both profitable and safe if managed in the right manner.
Call me, Richard Bond, Lettings Manager at Sow & Reap to find out how we can help.