Tenant Rent Arrears Rise Again
PRS tenant rent arrears still rising squeezing landlord finances even further
New research conducted by the National Landlords Association (NLA) has shown that the number of tenants behind with rent payments has risen again, leaving Buy-To-Let landlords without Rent Guarantee Insurance worried about meeting their mortgage payments both on their rental properties and their own homes.
The NLA membership survey revealed that over 50% of the landlords who took part had experienced some amount of tenant rent arrears during the previous 12 months and over 35% were worried about their tenants financial status over the next 12 months.
According to the survey, landlords with an average property portfolio size of 12, or more buy to let properties, is currently owed an average of around £2,300 from at least 4 of their tenants.
David Salusbury, Chairman of the NLA, commented on the findings saying “It is a sign of the difficult economic conditions that so many landlords are experiencing rental arrears. In these circumstances, landlords should work with their tenants to minimise the impact of financial stress. Short term instances of arrears can often be resolved with a sensible repayment plan or a temporary reduced rent arrangement. It is in any landlord’s best interests to help tenants through tough financial times where possible.”
Spokesman for Legal 4 Landlords, the UK’s leading tenant eviction company and landlord services provider, Sim Sekhon said “The current economic climate around the world is having an adverse affect on everybody’s finances, pushing stress limits for landlords and their tenants through the roof. Legal 4 Landlords agree with the NLA and believe that UK PRS landlords should work with their tenants to minimise financial stress, that’s why we developed specialist products and services to aid landlords and letting agents provide the very best services for their tenants. Tenant Referencing means that landlords can choose the most suitable tenants for their rental properties and Rent Guarantee insurance makes sure the landlord’s cash-flow remains unaffected regardless of any change in the tenant’s financial circumstances for the period of the policy”.