Bank Errors - Leading Cause of Rent Arrears in Chard's London Lettings Offices

A whopping one in fifteen standing orders are set up incorrectly by banks, making this the leading cause of rent arears and one of our London property management and accounts team's biggest headaches.

Chard lettings undertakes rent collection for around 65% of our clients. Landlords prefer it as we can then collect our letting fees quarterly rather than for the term in advance, greatly easing cash flow for landlords. Some agents regularly collect two years letting commission fees in advance, maening landlords see no rental income for the first three months of a tenancy - a potential nightmare if you have a mortgage to pay.

We therefore spend alot of time checking that the first rent payment due after the tenant moves in to their property is received in full and on time. Banks often take several working days to process payments, meaning it can sometimes take two weeks to set up a new standing order where the first has gone astray or is just plain wrong!