Landlords under pressure as rental arrears start building

Posted under General by Jermaine

Buy to let investors are under tremendous pressure as much as mortgage lenders due to surge in arrears. The latest data from the National Landlords Association indicates that 74% of calls seeking advice pertain to tenants not paying rent.

The NLA’s advice line remained busy attending 30,000 individual calls in last 12 months, at an average of 2,500 calls per month. 74% of these calls were from landlords who sought advice on ways to deal with tenants whose rental arrears were building at alarming rate.

Loss of job and increase in unemployment is contributing to rise in number of tenants defaulting on monthly rent, making it extremely difficult for buy to let investors to repay their mortgages. Landlords want to know what actions they need to initiate for recovery of rent, or how non-paying tenants could be evicted from their property.

Landlords are unwillingly forced to serve notice when rental arrears mount beyond limit, argues Richard Price, Operations Director at the NLA. He informs that a team of experienced landlords manages NLA’s advice line and provides important information about rules and procedures relating to rent recovery and eviction.

Landlords should contact tenants immediately when rental payment is missed. Unemployed tenants are eligible for certain Housing Benefits, sufficient enough to cover their rent. Landlords should help tenants to make application for these benefits.

Landlords should also be aware of rent guarantee insurance that exists in the market. These rent guarantee products can be used for fighting voids, rental arrears and repossessions.

Rental guarantee insurance is available with specialist brokers and on websites.

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