Landlords under stress over missed payments from tenants

23/02/2009

Tenants not paying rent is becoming a huge concern for landlords in the UK.

The National Landlords Association (NLA) has claimed that 74 per cent of all calls to its advice line concern fears over rental payments.

Call volumes have also surged to 2,500 a month with the onset of the credit crunch and the property slump.

Budgets have been put under pressure by the downturn, leading to cutbacks in the accommodation costs.

Richard Price, director of operations at the NLA, commented: "No landlord wants to serve notice on a tenant, but the reality is landlords are forced to do this when rental arrears becomes serious."

EuroDebt director Kevin Still added: “EuroDebt has taken a strong position in the residential letting agent arena, where it is not uncommon for tenants to be paying their unsecured creditors ahead of their agent or landlord. Over 20 per cent of the tenants we visit are already in arrears with their rent.

"Rent is a priority payment and avoiding eviction should be a common objective of the letting agent, landlord and tenant. Our recent approach has been to provide a free managed service to agents or landlords where we can amicably collect the arrears on the rent based upon what the tenant can reasonably afford. This is based upon a detailed face-to-face meeting with the tenant to get a complete picture of their income and expenditure. Payment of both rent and the arrears repayment plan are then prioritised as part of a formal Debt Management Plan.”

Other common landlord enquiries received by the NLA's advice line include "What is an Energy Performance Certificate?" and "How are disputes within tenancy deposit protection handled?"

Tags; Income Worries and Debt, Young Family Finances, Credit Card Lifestyle,

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