Rental arrears on the rise

Latest figures from the National Landlords Association (NLA) shows rental arrears are on the rise.

The NLA has reported that just under 50 per cent (49%) of landlords have experienced rental arrears in the last 12 months and 37 per cent of landlords are worried about instances of arrears in the months ahead. 

A landlord with a property portfolio of 12 lettings now has an average of four tenants in arrears with the average amount owed by tenants of £2,363.

The figures are being blamed on the general economic climate – as tenants are squeezed by the recession more are finding it difficult to meet their rental commitments.

It’s not all doom and gloom however. Short term instances of arrears can often be resolved with a sensible repayment plan or a temporary reduced rent arrangement. It is in landlords’ best interests to help tenants through tough financial times where possible and often the situation can be turned around.

The NLA found that landlords who work collaboratively with their tenants towards sustaining the tenancy for the long term encourage prosperous tenancies.

They claim that it is professional and collaborative working that will help ensure the private-rental market remains a promising investment opportunity, in turn helping to bring the economy back to an upward trend.

If you’re worried about rental arrears with your properties then the The Landlord Syndicate can help. See our tenant eviction services for more details: http://www.landlordaction.co.uk/site.php