Landlords worried over rise in rent arrears in 2009

Posted under General by Alan

The research by the National Landlords Association (NLA) revealed that 71% of the landlords who responded to the survey are worried that rent arrears would rise substantially during year 2009. Only 1% was optimistic and felt that arrears would come down next year. 28% expected no change in the current scenario.

The survey also highlighted that 67% of landlords faced problems in the collection of rent arrears in the past, while 37% were finding it difficult to recover arrears from present tenants.

Landlords are very much concerned about severe impact of credit crunch on tenants’ payment capacity. Most of them are dependent on steady rental income and some rely on this income to pay their buy-to-let mortgage. Non-receipt of rent from tenants poses serious threat of repossession and loss of property for the landlords.

NLA’s chairman, David Salusbury, expects landlords to do everything to receive regular payments from their tenants and suggests regular dialogue with tenants to avoid any dispute.

David Salusbury recommends that landlords must do thorough research about financial capacity and clean payment record of tenants before entering into contract. They must carry out tenant reference and credit checks to confirm that tenant is trust worthy for rent payments.