The charity National Debtline has reported an 84% rise in the number of tenants seeking advice on rent arrears.
The increase has been over the last four years and highlights the problems tenants are having in making ends meet as rents, utilities and the general cost of living rise.
Now, nationwide tenant eviction and referencing firm Landlord Assist is urging landlords to take immediate action if their tenants default on rent payments. The firm emphasised that most tenants who are unable to pay do not withhold rent wilfully, but because they are fallen on hard times.
Graham Kinnear, managing director, said: “The economic situation is really impacting now. We are referencing tenants who are wanting to trade to smaller properties as they are no longer able to afford their rent.
“There are increasing numbers who are being made redundant and increasing numbers who are finding it difficult to meet their rental obligations due to soaring fuel and utility prices.
“Landlords should take early action if their tenants default on payments. Arrears situations rarely rectify themselves, and in the current economic climate, landlords need to protect their interests.
“Although no landlord can predict a tenant falling on hard times, performing credit checks at the start of an agreement can help landlords to assess the tenant’s ability to pay the rent. Landlords should also consider rent guarantee insurance policies to protect their income should a tenant fail to pay on time.”
Comments
Agree that performing credit checks at the beginning of a tenancy is important, but credit checks are only so good at giving you an impression of how good a tenant that person is. Making sure you have spoken to previous landlords, their employer (and previous employers) is also really important.
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