Rent-to-Rent Disaster Averted – How I Helped A Landlord Reclaim Control of Their Property

Rent-to-Rent Disaster Averted – How I Helped A Landlord Reclaim Control of Their Property

10:30 AM, 21st October 2024, About 2 months ago 5

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When faced with the challenges of a rent-to-rent (R2R) agreement gone wrong, a landlord of a 3-bed HMO (House in Multiple Occupation) found themselves in a difficult position. With tenants in varying financial circumstances, from furloughed workers to the unemployed, and rent arrears spiralling to £5,400, the landlord was left frustrated, unable to get answers or rent from the R2R operator managing the property.

The Breakdown

The landlord’s troubles began when the R2R company, responsible for managing the property and ensuring rent payments, stopped communicating. Calls went unanswered, rent payments were missed for two months, and frustration quickly turned into concern. This situation was compounded by the fact that tenants had ceased paying rent after repeated maintenance issues were ignored by the R2R operator.

At a loss for what to do next, the landlord reached out to me, Julie Ford, for assistance.

Taking Action

My first step was to attempt communication with the R2R operator, but like the landlord, I had no success. The operator had gone silent. With little choice left, I contacted the tenants directly by writing to the property. Though the initial response from one tenant was less than friendly, I listened carefully and started to uncover the root of the problem.

The tenants felt abandoned. Their maintenance concerns were ignored, leading to frustration and ultimately, a refusal to pay rent. They were stuck in a property without support, and tensions were high. It became clear that if I was to resolve this, I needed to get the tenants back on side and help them address their financial issues.

Rebuilding Trust and Finding Solutions

With the property back in the landlord’s control, I focused on rebuilding relationships with the tenants. I assessed each tenant’s financial situation, including their eligibility for benefits and assistance. This revealed several options that could help reduce their arrears and get them back on track. Two tenants were eligible for Universal Credit, and I helped them apply.

Given that all of the tenants had backgrounds in the care sector, I identified over 10 potential charitable funders that might provide assistance. After making contact and explaining the situation, I successfully secured contributions from seven of these organisations.

The Result

The combined approach of Universal Credit applications and charitable grants cleared the entire £5,400 in rent arrears. Beyond this, I maintained regular follow-ups with both the tenants and the landlord at months 1, 3, 6, 9, and 12 to ensure that payments stayed on track and no further issues arose.

The landlord was not only relieved to recover their rent but also grateful for the ongoing support and peace of mind that the situation was finally under control.

Call to Action

If you’re a landlord struggling with non-payment of rent, difficult tenants, or a rent-to-rent operator that has gone quiet, don’t wait until the problem escalates. Get in touch with me, Julie Ford, and let’s work together to get your property back under control. I specialise in helping landlords navigate complex situations like this and can offer tailored solutions to recover rent and restore order.

Reach out today, and let’s start turning things around.

Contact Julie Ford


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Comments

PAUL BARTLETT

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13:09 PM, 21st October 2024, About 2 months ago

Interesting experience so thanks for sharing. You didn't mention the R2R company outcome in this...

My experience with a R2R company was that they didn't invest in systems and processes for businesses as usual so quickly went out of control and insolvent. As a creditor, the insolvency service had nothing for me, and disqualification of a director was no help, though justified.

It would be good to know what progress could be made with the R2R Co in this case and any general pointers.

I would suggest secure Deposit and references neither of which are simple for a company.

Paul Essex

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13:22 PM, 21st October 2024, About 2 months ago

Without communication from the RTR organisation how can you possibly cut them out of this - presumably they should be entitled to some of that back rent?

Julie Ford

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8:00 AM, 22nd October 2024, About 2 months ago

Reply to the comment left by Paul Essex at 21/10/2024 - 13:22Hi Paul, it’s easy to cut a R2R operator out of the situation. They had failed to pay the rent or attend to maintenance, so had breached their contract with the LL.
Under forfeiture the landlord can give minimal notice to terminate the agreement and take back the property. The R2R operator is not entitled to any rent back as they are the ones in breach

Paul Essex

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9:25 AM, 22nd October 2024, About 2 months ago

Interesting, thank you much easier than I expected. I guess it would be less straightforward for landlords who unwittingly grant an AST to the intermediary.

Robert M

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11:35 AM, 22nd October 2024, About 2 months ago

The post didn't make it clear as to how the situation jumped from talking to the tenants, to the landlord having regained control of the property, but you have then explained to Paul Essex that you utilised the forfeiture clause to "cut out" the R2R operator.
This case does show the importance of using a proper lease agreement, which contains the forfeiture clause, for any R2R agreement, whether to a private R2R operator, or to a social landlord, charity/not for profit organisation, or local council.
Overall, a positive outcome for the individual residents, and the landlord.

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