Landlords facing rising rent arrears
The number of tenants falling behind with their rent payments has more than doubled over the past six years. In the first nine months of this year, the Money Advice Charity’s telephone helpline received nearly 20,000 calls from people behind with their rent, which represents a 37% increase compared with the 2011 figure.
Rents across the country have risen to an all-time high. In a recent survey for BBC Panorama, 31% of people paying a mortgage or rent spend more than a third of their disposable income each month doing so. The rent that tenants pay should be no more than 40% of gross earnings under the recognised thresholds that tenant referencing companies use.
Richard Francis, Director and Founder of Makeurmove.co.uk commented: “Rent arrears are becoming the fastest-growing debt problem in the UK and this is a big problem for landlords across the UK. In fact, the number of landlords and agents seeking vacant possession through the courts is at its highest level since 2009 and up 12.7% in 2012 on the previous year. “It is vital that landlords screen potential tenants, as it is easier to avoid arrears, than it is to recover them. Non-payment, late or partial payment of rent remains the biggest worry for landlords. Good letting agents like us are highlighting the risks to landlords and are recommending strict vetting procedures, backed up with rent and legal protection insurance to help landlord against the non-payment of rent. “Good communication is critical in preventing arrears. It is important to start the dialogue as soon as you know your tenant is experiencing financial pressure. Take a professional and understanding approach and have a clear process to follow if arrears continue.”
Makeurmove.co.uk is the original online letting agent, set up by a team of experienced landlords, business leaders and technology specialists. Since 2006, the firm has successfully let thousands of private residential properties for landlords all over the UK. An award winning technology driven company, Makeurmove.co.uk has lead the pace of innovation in the property rental sector, driving down costs for both landlords and tenants.