The cost of tenant removal
Posted on 30th October 2018 at 11:37
It may seem that we have devoted rather a lot of time (and blog space) recently to the subject of rental protection & eviction cover. The sole reason for this is that we believe that every Landlord should have this type of cover in place to protect themselves should they get into difficulty with problematic tenants (or indeed tenants who are themselves facing financial difficulties).
There are many reasons why things can go a little wrong, and we have covered some of those in previous blogs. The subject we want to expand upon today is the scale of the costs a landlord will face without the protection; large sums of money which we know most of our clients would struggle to find at short notice and which could, potentially, make them question the viability of what they are doing.
So, earlier this week we received an updated schedule of pricing from a trusted legal solicitor we have worked with before (and whose fees, by comparison to others, are actually very reasonable). The figures are a stark reminder of just how expensive it can be to start the process of eviction – and this doesn’t even touch upon the lost rental which accrues in the time it takes to achieve vacant possession.
Typical costs associated with eviction (incl. VAT): -
Serving of Section 21 notice - £72
Legal costs - £540 to £600 (depending on traditional or accelerated possession)
Bailiff instruction - £120
Barrister’s fee - £144
Court issue fee - £325 to £355 (depending on traditional or accelerated possession)
Bailiff fee £121
Legal fees if defended by tenant £230 PER HOUR
With the above in mind it really is not surprising that the financial impact of tenant removal without adequate cover in place can easily run into thousands of pounds, even before the addition of lost rental revenue over the weeks and months the process can take.
Rental Guarantee & Tenant Eviction is the product we recommend to each and every one of our landlords, and at just £150 per year we think it is probably one of the easiest decisions they will ever make. Total peace of mind and protection from financial losses for just £12.50 per month? That’s barely the cost of a bottle of wine – and what’s more there’s no hangover with this!
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