Rent Arrears And Void Periods Improve
UK PRS void periods and rent arrears are falling steadily
UK private rented sector landlords are reaping the rewards of the developments of specialist products and services designed to ease the burden for landlords and the UK lettings industry.
Market leading companies, such as Legal 4 Landlords have spent a great deal of time, effort and resources developing and refining a vast array of specialist products and services including comprehensive tenant referencing, landlord insurance and rent guarantee insurance, as well as leading the way with tenant evictions.
According to data from the National Landlords Association (NLA), private rented sector void periods have fallen to their lowest level in over 12 months, with only 33% of landlords experiencing vacant periods in the last three months. The figures are down 13% when taken year on year.
However, there are significant variations at a regional level:
- Voids are greatest in the North-East of England where 54% of landlords have experienced empty properties within the last three months
- Void periods are lowest in London where only 20% of landlords have experienced empty rental property over the same time frame.
- The average duration of a typical PRS property being empty (void) has reduced from 69 days recorded last year to just 60 days.
Landlords are utilising Tenant Referencing and Rent Guarantee Insurance to reduce the risk of accepting bad tenants or even tenants getting into severe rental arrears.
On the whole tenants in rental arrears fell by 9% last year standing at 41% in the last 12 months.
David Salusbury, chairman of the NLA, said: “It is in every landlords’ business interest to maintain good, long-lasting tenancies and avoid voids. At a time when demand far outstrips supply, it is imperative that empty properties are filled quickly, following any necessary maintenance and improvements.”
Sim Sekhon, spokesman for Legal 4 Landlords said: “Landlords want to protect their rental income and get the best services they can in order to ensure that their rental income stream remains intact, that is why Legal 4 Landlords have spent so much time and effort developing the very best resources to allow them to do so. Our solutions are cost effective and provide landlords with the necessary peace of mind to allow them to operate without worrying about the tenant’s financial circumstances changing and not being able to get the rent paid.”