Could agree more. If you don’t break the rules and take out rent insurance and make sure they pass their credit checks. You e got nought lose. A great comment. I listen to some of the people on here and they don’t half make life more complicated than it has to be. Brian
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If current market rent across 2 beds in an area is £800 then does this mean they will forever stay at this price as no one will be willing to raise the rent to say £850? (for example if landlord is having higher mortgage due to a Liz Truss type incident, more costs due to inflation etc and needs to raise rents to survive). Is there a range between which it will still be considered market rent? Eg between £800 and £850 as all 2 beds are not identical. Looking at it (as no Landlord will want to be challenged on rent rate) the rents will stay exactly as they are for years to come (despite inflation, individual landlords circumstances etc). Or am I not getting it? I think market forces should determine market rent. If it’s too high the house wont be chosen by tenants.
Glad you said it 
That’s exactly what happens.
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John175, I think you may be underestimating how easy it is to make a mistake with the RRA as some of the rules are complex and multi-faceted. You could then be hit with up to a £7k or even £40k penalty for very simple errors and in some cases also 2 year rent repayment order. Ive highlighted a few examples on the forum recently.
Its good that you’re positive about the future operating climate if you’re intending to carry on, but landlords should not be sitting back and hoping they’ve got everything right with this particular legislation.
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I wouldn’t refuse anyone under these circumstances if they can provide a guarantor and are of good character, nor would I load the rent level.
I’ve even had overseas tenants and HB tenants who have been exemplary. I’ve also had fully referenced / working tenants who were problematic. It’s literally a lottery.
Unfortunately it’s never that simple. I recently received a settlement from an inconsiderate tenant for remedial works to a wrecked property to the tune of almost £7K + £1,150 bond, so clearly not low paid. Not because they were responsible, simply very lucky as they didn’t want to cause trouble for their guarantor relative.
A quality guarantor is by far the best insurance.
All well and good if they pay out. I’ve been almost 2 years in negotiations with an insurer who refuses to payout for loss of rent in respect to a subsidence claim, even with proof of uninhabitability from the VOA council tax delisting which, by the way, took 12 months and a tribunal to achive said delisting.
Insurers and UK bureaucracy (police included) are a (bad) joke!
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I wrote more likely. Clearly some richer tenants are inconsiderate and cause damage. But i suspect the most common problem is tenants getting into arrears and that happens when people cant work. People cant work due to illness which affects the poorest most or losing jobs which can happen to anyone but you are maybe most at risk if you are low paid and dont have a skill, and the poor are less likely to have savings to fall back on. However as i said it would be good to see some proper research evidence…
Sorry to hear of your difficulties. Insurers are as bad as estate agents and with equally poor reputation for a reason
If it was literally a lottery, we’d have to buy tickets and at least one of us would get a massive payout each week.
I’d say the best insurance is having a high bar and vetting each applicant thoroughly. Second best is a quality guarantor in the unlikely but possible event your first line of defense fails.
Obvs no guarantees with guarantors either. Ironically.
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If you’re lucky enough to be the one in 14M that wins…
Hence the analogy. 
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For RPI a guarantor needs to show reliable income of 4x rent.
If the guarantor doesn’t pay, you’ve just got to go through the whole court process with him. And the reality of a claim is that you’re very likely to get an order to repay in instalments at best. The judge may well dismiss it if the guarantor says he can’t afford the claim.
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Absolutely.
But, I personally, would be happier with a good guarantor. As I noted in one example above, which has happened on a further couple of occasions. I’ve also currently got a guarantor who has paid his Sons rent for 7 years and the possession order costs to get him out, now that the tenant has gone rogue and their relationship has broken down.
I’ve had 3 insurance claims, one refused to pay, thanks to a letting agent who didn’t keep maintenance inspection records as required by insurers, one paid out because a loss adjuster and his ‘friend’, who was at the time our specialist insurance claims manager, were ‘doing a deal’, one is still in dispute since 19 months. 3 out of 3 duds, if you consider the second scenario pure luck, since the LA tried to reverse his assessment when I sacked the ‘friend’. I can’t imagine the value of my time involved in the current dispute and the cost that would equate to.
Thankfully, I have the acumen and experience from my previous profession to fight back and don’t need legal / professional assistance, otherwise it would have cost me a small fortune or, like most people, I would have given up, which is what insurance companies rely upon and push you into with their devious corporate might.
Sorry for my rant, but as the saying goes, it’s good to talk!, and hopefully somebody may benefit from my experiences.
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What type of insurance needed a record of maintenance inspections? Was it RPI?
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Buildings including loss of rent.
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Insurance co, will use every trick to pay out, when covid hit severeal went “into liquidation” and many LL lost out, dont trust em.
Since the RRA came in, it feels like landlords are being more careful with pricing and trying to stay realistic with the market. Before, some properties were listed lower to attract multiple offers, but that approach does not work as well now. Tenants seem to compare options more carefully and move on quickly if something feels overpriced. In the end, pricing fairly from the start probably saves time for both landlords and tenants. Good properties will still attract interest, but renters now expect better value and transparency. The market feels a bit more balanced compared to before.
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