Landlords Struggle as Tenant Arrears Rise

08 August 2012 Categories: News

Landlords Struggle as Tenant Arrears Rise

According to research conducted by the National Landlords Association, the number of tenants experiencing financial difficulties to the point of falling behind with rent payments is again on the rise, leaving landlords with the stress of making their own mortgage payments on time.

The survey of NLA members revealed that over half of the landlords questioned had experienced tenant rental arrears during the previous 12 months, and when asked about their concerns regarding the future over one third admitted they were worried that their tenants would develop problems over the coming months.

The survey also showed that the average portfolio landlord with 12 or more buy to let properties is currently owed over £2,300 in total from 4 of their tenants.

Chairman of the NLA, David Salusbury, commented on the findings saying “It is a sign of the difficult economic conditions that so many landlords are experiencing rental arrears. In these circumstances, landlords should work with their tenants to minimise the impact of financial stress.

“Short term instances of arrears can often be resolved with a sensible repayment plan or a temporary reduced rent arrangement. It is in any landlord’s best interests to help tenants through tough financial times where possible.”