How to encourage tenants to pay on time

If you have found yourself repeatedly renting a property to problematic tenants then you may be wondering how you can cut down on the number of tenants who end up missing payments. As a landlord, missed payments can be one of the most frustrating aspects of buy-to-let, and can leave you disheartened and frustrated with your tenants. Here are some ways that you can reduce the likelihood of arrears.

Standing orders

We are all human and often a tenant can miscalculate the payment day or simply forget to make a payment at all. One of the easiest ways to prevent any mistakes is to have the tenant set up a direct debit or standing order. This standing order can be set up on the day after their payday which should allow rent to be paid automatically, and before they have chance to accidentally spend too much of their wages.

Choosing a legal structure for your business

One of the most important decisions you have to make when setting up a company is the type of legal structure that you wish to operate under. It is important to have a good understanding as each option has its own specific advantages and disadvantages relating to a number of areas including tax, liability and finance. Here we will go through each of the three most popular forms of business structures and detail the pros and cons.

Sole Trader

The easiest structure to get your head around, a sole trader is normally the most suitable business structure for small businesses. As a sole trader you solely own and control your business and are liable for it. In the UK the majority of businesses operate as sole traders. Some examples include butchers, barbers, photographers and plumbers.

What to do if a tenant defaults on their rental payment to you

As a landlord it can be incredibly frustrating when a tenant defaults on their rental payments. Unfortunately, it is one of the most common problems that landlords face yet many landlords have no contingency plans to deal with the situation when it happens.

The first thing to do is to take a step back and try to stay calm. Changing the locks on the house while your tenant is out or calling their mobile phone repeatedly is only going to frustrate the situation and potentially lead to claims of harassment. Instead, the best route is to accept what has happened and begin working on a solution.