Agent warns of landlords' unseen costs
Unforeseen costs, including unexpected maintenance and a shortfall in rent, are hitting landlords in the pocket.
According to new research, more than 80% of landlords say they are receiving less rent than was agreed, while 90% are concerned about the possibility of tenant arrears.
Four in ten say they have over £1,000 a year of costs that they have not budgeted for, while 70% of landlords have experienced void periods in the last three years – half said the void last up to three months, and one in ten said the void lasted more than six months.
Altogether, the average landlord finds over £1,500 costs a year that were unexpected.
The study, undertaken by letting chain Northwood, also highlighted that over half of tenants are late with their rental payments and 59% of landlords had to chase tenants for payment at some point in the last year.
Nick Cooper, managing director of Northwood, said: “Landlords come under fire with accusations of greed, but this research highlights that landlords face a number of difficulties.
“On top of unexpected costs, tenant arrears and vacant properties are a very real concern, and landlords can be hit hard.”