Landlords Warned To Act Now To Avoid Rent Arrears
Rent Guarantee Insurance Protects UK Landlords Income
Private Rental Sector landlords are urged to act now to secure the tenant’s rental payments or prepare for the worst this year as tenant default rates have already increased by 8%, in the second quarter of 2012, and are still rising.
The number of private sector tenancies in severe rent arrears climbed by over 7,000 in the 3 months to June 2012 putting severe pressure on many landlords’ finances as well as adding to the tenants problems.
In the second quarter of this year over 100,400 tenants in England and Wales were in severe arrears, an increase of 24% compared to 2011.
Tenancies in severe arrears represented 2.6% of all tenancies in the UK private rented sector (PRS), up 0.2% on the previous quarter.
Tenant arrears are a serious issue for landlords, and private rental sector landlords need to take steps to ensure rent payments are assured.
Rent Guarantee Insurance protects landlords from defaulting tenants by ensuring that rental payments are made direct to the landlord in full.
If you are a Landlord who lets a buy to let property then there is always the risk of rent default by tenants. Even the best checks and references cannot predict a tenant falling on hard times and not being able to pay their rent, that’s where Rent Guarantee Insurance comes in.
Despite the number of severe rent arrears cases (tenants with rent arrears of more than 8 weeks) continuing to climb, the use of Rent Guarantee insurance products has already started to have an effect on the general level of tenant rent arrears with 8.9% of all rent in the private rented sector late or unpaid by the end of May, a decrease from 9.9% at the end of April 2012.
