The coronavirus pandemic has placed significant financial strains on families across the UK. A new report released by Resolution Foundation has highlighted this profoundly by reporting that almost half a million families in the UK have fallen behind on rent payments due to the pandemic.
The report outlines that just 3% of private renting families have been able to negotiate a lower rent during the course of the crisis. Additionally, one in 20 private renters stated that they had been denied rent reductions.
Unsurprisingly, the economic impacts of the crisis have been extensive. One in four private renters have seen their incomes fall according to the report. This has forced many to turn to their savings to maintain financial stability, posing concerns for future financial health.
Despite the government’s efforts to halt sharp increases in unemployment with furlough, this is due to come to an end later in the spring. Consequently, families finances could suffer further and ultimately could result in rent arrears rising too.
Communication continues to be crucial
Having a clear system of communication between a property manager and tenant can minimise any potential delays in normal times. In this climate however, clear and efficient communication is critical. Government support schemes like furlough will be coming to an end and for many, unemployment and further rent arrears could loom.
Property managers must build on what they achieved previously during the pandemic. Ensuring that a clear dialogue is kept between landlord and tenant can minimise the possibility of further rent arrears. For rent payments, bringing in advanced automation and centralised financial structures has encouraged the growth in communication and efficient portfolio management.
Automation to cut out human error
More agencies and property managers have found themselves forced to change and adapt as the pandemic has developed. Any errors, mistakes or delays caused by human error or inefficient processes have been shown to be particularly costly during the current situation. As such, agencies have sought to streamline their processes and explore how advanced automation can cut out any errors.
Centralising financial management with property management software has provided managers with more security and flexibility in tracking rent payments.
Automation has allowed managers to streamline the processes by which financial information is managed and tracked. This encourages efficient communication with all parties in the knowledge that with an automated, flexible financial module, mistakes or delays are limited.