Transcription:
Hey guys, so changing pace today. I've just been at an eviction, well, an eviction meet up, there's obviously no one there, that already handed in, I moved out yesterday. So that's actually the best way for an eviction to happen. You don't need to change the locks, you don't have to do any of that. They actually left the keys with concierge, that's good.
So that's the end of an error, which is probably about 10 grand, pull up the landlord's down. So that's pretty full on to lose that much money. And that was mainly through COVID. And yeah, the tenant not paying. And yeah, getting well behind the rent and not catching back up. And really, I mean, you know, whether she, you know, whether it was real or not, I don't know, but the reality is, it did take a long time.
So just, I thought I'd just chat about, you know, whether it's worth chasing money. So, you know, a tenant falls into disarray, they can't pay their bills, you're chasing them. What do you do? Do you know? Do you let the money go? What choices do you have?
You know, so, you know, at the end of the day, it's quite an interesting one, because I think, you know, you shouldn't sue a man of straw. In other words, if the people haven't got the money, then you leave it. But you have got six years, yeah, because it's a non-secured debt, it was just secured can go up to 12 years, but six years, you've got, so you cannot raise a money claim at any stage up to six years, you know. And if you do that, potentially, you give them time to get back on their feet, and then go after that money.
I mean, whether you do that, or whether you just get on with life, that's one for you guys to decide, it depends on how much it is how likely to get it. But I know some of these, you know, bills that are owed now are up in the 10, sort of grand, £10,000. It's a lot of money. But you know, for someone who's on whatever wage, that might be too much for them to actually ever pay back., you know.
And really, they will, the court really doesn't make it easy for you to collect the money. Now you can use a debt collector, you can get a high court enforcement, you can do all these sort of things. But they cost you money up front. And if they don't have the assets, it's hard to get the money back. So you really got to play the game of whether it's worthwhile pursuing or not, you know.
I mean, if you're really tight and you can't afford it, then what I would suggest is you get rental legal to make sure that you're covered by the rent, and you don't fall behind in that, you know, that may save you for about 250, 300 bucks a year, you know, you're likely to cover the rent and all that sort of stuff, which actually works quite well. But sometimes you got a hot, you know, portfolio of 10 or 20 properties, you know. That 300, let's say 300 by 20 properties that 6000 a year, then you're away how many times you are going to get that more than 6000 per year, you know, nothing happens first year, second year 12,000, 18,000, 24,000, you start to go, is it really worth having that? Or is it worth self-insuring?
I've been for a long time self-insurer, but then also on some of the bigger properties that I have, that have this sort of two grand rents, that sort of thing. That's where I kind of think less, you know, what, for two or 300 bucks, it's probably worth it for a year, you know, because that can get up if you think 8, 9, 10, 12 months to get possession, you know, that can then start adding up and that's the risk is really high.
But anyway, guys, yeah, so I think you've got to weigh whether it's worth chasing that debt or not. Because in a lot of cases, it's just not going to be worth chasing it. You better to just, you know what, write it off and move on with it. Or just decide, you know what, I'll write it off for now. But I'll come back in three years, and just see if I can search for the person cost about 100 bucks to find the person, send them a few emails and maybe get something more out of them and see if he can't get some of that money back after they've got back on their feet. And so, cool guys, chat later. Bye.
