A Reality Check for Landlords

As the credit crunch continues to bite, landlords are becoming increasingly concerned.

The National Landlords Association recently carried out a survey that showed over 71% of Landlords expected rent arrears to increase during the year, while over 67% are already experiencing problems  tenants not paying their rent. 37% of landlords have experienced difficulties with problem tenants concerning payments of rent.

Unfortunately for landlords, this is seemingly as a result of companies making staff redundant as generally it is the younger and newer members of staff who are the first to be let go and these people tend to make up the majority of tenants – flat sharers in particular.

‘Landlords are clearly concerned that tenants will be unable to keep up with rent payments over the next 12 months,’ warned David Salusbury, chairman of the NLA.

‘It is a worrying situation to be in and landlords need to do all they can to ensure they are regularly receiving rent. Regular communication between both parties is essential to head off major problems.’

It is recommended that all landlords familiarize themselves with such matters as housing benefits as it may be that the amount of the benefit is enough to cover the rent.

Landlords taking on new tenants should do a thorough credit check before the lease is signed. They should also be wary of agents as they have a vested interest in getting the tenant to sign and a few are not as thorough as they ought to be in checking out potential tenants.

‘It is more important than ever that landlords are able to make an informed decision about the financial worthiness of the tenants they are taking on. A simple credit or tenant reference check before they make a decision will give landlords some additional peace of mind that their tenants can be relied upon to meet rent payments,’ says Salusbury.

Creditsure Ltd offer a tenant credit check service that is used by a large amount of landlords and can be reached on 0870 042 2380.