37% of landlords yet to get rents from tenants

Posted under General by Alan

National Landlord’s Association (NLA) in its recent research has found that 37% of landlords have not been paid rents by their tenants.

The survey also points out that 44% of landlords could not get their rental payments in last 6 months and NLA suggests that it is one of the major causes for significant rise in mortgage arrears and repossessions among buy-to-let borrowers.

Although the court system is found to be quite right for recovery of rents, NLA reports that only 50% of landlords have sought courts’ help to recover their losses because of inordinate delays, sometimes more than 3 months, in hearing of cases.

According to Davis Salusbury, chairman NLA, tenants must give top priority to payment of rent since delay of one month in today’s difficult conditions could be “the straw that breaks camel’s back.” He insists that mortgage has to be paid regularly.

Salusbury also informs that only 35% of buy-to-let mortgages pertain to rental properties and contrary to media reports, most landlords are not facing any threat of repossession or loss of asset.
His advice to landlords and tenants is to communicate with each other and tackle their financial problems together.

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