Challenging conditions for landlords and letting agents could cause rent arrears to rise – something landlords should be wary of. RentalStep says that if rents continue to rise and wage growth remains stagnant, tenants may find it difficult to meet their monthly payments, causing long-term problems for landlords.
According to Your Move, the number of tenants in arrears increased each month between January and April – the proportion of its tenants in arrears rose from 8.4 to 9.4 per cent.
Belvoir says a fifth of its offices had four to 10 tenants in arrears during the first three months of the year.
Rent arrears cost landlords an estimated £900 million each year. As tougher conditions affect landlords and agents, the number of tenants in arrears could increase.
“Rent arrears are a serious issue, landlords need to do everything in their power to protect themselves from being seriously affected,” says Mike Georgeson, CEO.
One of the most crucial processes is to carry out comprehensive checks on prospective tenants.
RentalStep’s TenantPassport, a digital rental history profile, including rental history, employment details and references, can be shared with landlords and letting agents.
“Making it a formality for rent payments to be included in credit scores is key to securing the financial future of the next generation,” concludes Georgeson.