Tuesday, 1 February 2011

Landlords owed more than £267 million in unpaid rent

Figures recently released for December show that landlords in the UK are owed a staggering £267 million in unpaid rent. Unpaid rent increased from 9.7% in November to 11.7% according to the LSL December buy-to-let index.

This shocking news prompted Ian Fletcher, director of policy at the British Property Federation to say: "Christmas is an expensive month for all with the pressure to ensure presents under the tree come the 25th. But Christmas should not be bankrolled by long suffering landlords by not passing on December's rent."

We agree with Ian Fletcher, but most worryingly we believe that this increase in unpaid rent is set to continue upwards. Landlords who rent their properties to DSS tenants have seen a dramatic change in their income since the introduction of Local Housing Allowance. More and more tenants unused to dealing with their rent struggle to balance their spending and it is often their landlords who suffer with unpaid or late rent. Despite a torrent of warnings and complaints from landlords the Government have still to address this problem.

Local authorities across the UK have been deluged with complaints from landlords who have not had their rents paid. In landlord forum meetings council employees have faced a barrage of justifiable anger from landlords who face serious cash flow issues because tenants have spent their rent elsewhere.

But this problem is not confined to the benefits sector, working people are now under serious pressure as the cuts following the recession start to bite. Young people in particular are vulnerable to redundancy and job changes and young people make up the majority of the private rented sector tenants.

Landlords need to take action to protect themselves from the affects of unpaid rent. We have always advised landlords to take up comprehensive references on prospective tenants. In addition products like rent and legal protection can be added to landlord insurance policies - but a word of warning, ensure that you clearly understand how you can make a claim on these policies. Far too many rent and legal policies have clauses that make it difficult or impossible to actually make a claim.

Through NetRent.co.uk landlords can actually guarantee their rent is paid on time and in full. Our business partners Rent on Time will guarantee that your rent is paid every month, on time, whether the tenant pays or not. Please click on the links below for more information.

Please click here for more information about guaranteeing your rent - Rent on Time through NetRent.co.uk

Please click here for information about rent & legal protection - Landlord Insurance through NetRent.co.uk

Please click here for tenant referencing through Experian - Tenant Referencing

For more information about all aspects of renting property please click here - The Landlord Resource Centre