Landlords Are Losing Out To Unexpected Costs According To New Report

15 November 2012 Categories: News

Landlords Are Losing Out To Unexpected Costs According To New Report

National letting agency, Northwood, recently conducted a survey that highlights the losses incurred by landlords due to unexpected costs. According to the survey, landlords pay an average of £1500 per year out of their rental income on covering  things like rent arrears, maintenance bills and void periods; a figure that equates to over £2billion per year nationally. The survey also showed that over 80% of the landlord respondents received less from their monthly rental income than they originally thought they would because of the unexpected costs they face.

Even with tenant demand being as high as it is, it seems one of the biggest costs facing landlords comes from void periods. Half of the survey respondents admitted to losing out on around 3 month’s income each year because of empty properties. Similarly around half of the respondents also experienced late or missing rent payments on a regular basis.

Nick Cooper, managing director of Northwood, commented on the findings, saying “Landlords have recently been under fire with accusations that tenants are victims to greedy landlords, but this research highlights that landlords too face a number of difficulties. The amount of money being paid out for unexpected costs each year is staggering, and with tenant arrears and vacant properties a very real concern, landlords can be hit hard.”