The Coalition Government’s public spending cuts have given an expansion opportunity for a firm who specialises in managing the legal aspect of tenant evictions on behalf of private landlords.
Legal 4 Landlords, a company based in Warrington, Cheshire, is planning to roll out its franchise model throughout the country. They hope to boost their offices from 19 to 29 by the end of December 2011.
Commercial Director Sim Sekhon said “The combination of spending cuts and rising unemployment has led to an increase in demand for our eviction service. Tenants can’t afford to pay their rents due to the spending review, increase in VAT and loss of jobs where their budgets aren’t stretching far enough, and there are not enough council properties provided for them to move into.
“The company understands that landlords can not afford to pick up the bill either, as they will have a mortgage to pay and quite often will have no choice but to start the process of eviction because if they do not they will face losing their properties to the mortgage lender.”
Legal 4 Landlords was founded in 2008 and have 22 staff, but they are projecting revenues of £1.5m over the next 12 months which will be an increase of £1.1m. Apart from eviction services they also offer a debt recovery service and a fast growing tenant referencing agency which has really picked up recently. At the moment they receive between 30 to 40 cases per week from private landlords and estate agents. Of course many landlords can opt to get such services via their landlord insurance.
The firm only covers 60% of the United Kingdom at the moment which will be increased as the year goes on. As landlords themselves, they have first hand experience of letting out a property. They also know all about the pitfalls and they believe their services have been designed to make the lives of private landlords a lot easier.