Should a tenant fail to settle lawful charges at the end of a tenancy, flatfair may offer to purchase that debt from the landlord for up to 12 weeks’ worth of rent (but no more than 6 weeks’ worth of rent arrears). Flatfair then takes ownership of the recovery process, and landlords may choose to appoint flatfair (at no further cost) to additionally pursue any extra costs beyond the 12-week limit. By opting for this additional service, the landlord can seek to recover further losses without the need for direct legal action on their part.
Where flatfair purchases landlord debt up to the value of 12 weeks' worth of rent, this is achieved by way of an offer letter (which must be signed by the landlord within 10 days of receipt from our team) and an assignment document which legally transfers the debt to flatfair. Where flatfair offers to service additional landlord debt on the landlord's behalf, this is achieved by way of an offer letter and a document appointing flatfair as the landlord's agent. As soon as we collect these funds, flatfair will pay the landlord the outstanding amount directly to their chosen bank account.
Flatfair operates on the basis of a discretionary model in terms of the offers it makes to landlords. This isn't about being able to say 'no' - indeed, historically we have purchased landlord debt in the vast majority of cases. Rather, a discretionary model means that we can avoid inconvenient red tape, can keep costs down and can process pay-outs to landlords more quickly. We also have the flexibility to provide assistance when a tightly-worded insurance contract may preclude help - every case is considered on its individual merit by a person, not a computer, where we can use our judgement and insight to help landlords. This might include offering help in unusual circumstances or where a new problem appears. Finally, being discretionary doesn't mean there are no rules. We take our reputation and our responsibilities towards landlords very seriously, we have a clear set of terms and conditions, and we cannot and would not decline to assist you just because we felt like it.