• Reena Malra – Property Lease Options. How landlords can avoid repossession.

    Reena Malra – Property Lease Options. How landlords can avoid repossession | BBC Wales recently reported that there was a 15% increase in the number of repossession orders in the first quarter of 2012, with 1,125 repossession orders to Welsh landlords. 

    Reena Malra This is due to financial pressures of tenants, making them more likely to miss or fall behind on rental payments.

    This is a Catch 22 situation. It is difficult for both parties due to the unforeseen and uncertain economic climate. Everyone is trying to cut costs from the public to the private sector. Therefore we must acknowledge the situation from both sides and find solutions that work for everyone involved. As a landlord I appreciate both sides and work harder with my tenants as soon as I know they are in financial distress.

    Keeping a good relationship between landlord and tenant is key, reacting the moment you realise the tenant is in financial distress rather than letting it get out of hand. You can then come up with a solution, which creates a win-win situation. If necessary speak to the 3rd party involved which is influencing the tenant’s finances to see if you can come up with a solution. It’s important that tenant circumstances must be separated from those who can’t pay from those who won’t pay.

    [heading style="1"]In most cases, you should agree a payment plan and try and avoid evictions due to the time consuming and costly nature of the possession court[/heading]

    It’s certainly not in the landlords favour to evict tenants as the court is expensive and voids can lead to missing mortgage payments in some cases and inevitably when the tenants are evicted, the place is left in worse state then before for which the landlord may or may not have the funds to refurbish. This in turn can mean mortgage companies will have to repossess their house. As a property investor, I come across many novice and long-term investor landlords who are in this situation and I help them in managing their problems, hence preventing them from getting repossessed.

    I work with many counselling services to ensure that we protect the tenant and the landlord from getting repossessed. Eviction is certainly always a last resort, the warning signs of tenant financial trouble must not be missed.

    Inexperienced or accidental landlords only exacerbate the situation; they are not sure what to do when a tenant goes into arrears, which worsens their financial situation and may lead to missing mortgage payments and ultimately repossession.

    There are many alternative solutions that tenants and landlords can explore to prevent repossession and this is where I lend my expertise to other landlords on a daily basis. I can help many landlords on all aspects of property lease options, instalment options and rent to buy. Contact me for more information or for help if you are in danger of being repossessed.

    Read the BBC report.

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    About Reena Malra

    Connect with me: Google+ Reena Malra is one of the UKs most successful property investors and mentors. The strategies Reena has discovered and developed over the past few years take the focus off the price and put it on the flexible and convenient payment terms. This is how Reena can structure transactions to really benefit both the buyer and the seller. Reena specialises in property lease options, instalment contracts, rent torent, below market value (BMV), stopping repossessions, joint venture, delayed completion and tenant buyer strategies. She also runsworkshops and webinars, and offers property consultancy services and one-to-one mentoring.

    View all posts by Reena Malra

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