Rent arrears and landlord fears!

May 11, 2015

A poll conducted by Today’s Landlord has revealed that the biggest fear landlords have this year is unpaid rent.

The survey showed that just under two-thirds polled believe unpaid rent is the biggest fear for landlords in 2015, while nearly a fifth fear property damage and 16.58 per cent are worried by the growing amount of paperwork involved in renting a property.


Results as of 8 May 15

Managing Director at the Association of Residential Letting Agents (ARLA), David Cox, said the results correlated hugely with what they hear from landlords.

“Unpaid rent is by far the greatest concern right now. Many properties within the private rented sector (PRS) have been bought with the help of mortgage finance, which means that if tenants don’t pay the rent they owe, landlords cannot pay their mortgage and therefore their property is at risk of repossession,” explained David.

“This is why we always recommend that landlords’ business plans should be based on getting only 11 months’ rent in each calendar year, so there is sufficient leeway for rent arrears.”

Northwood M.D. Eric Walker commented:

“Of late, with all the talk of a booming rental market and statistics suggesting that rental arrears are in decline, landlords have seemingly become a bit complacent about unpaid rent.  However, beneath the headlines,  it comes as no surprise to us at Northwood that un-paid rent rightly remains a key landlord concern in 2015.

We are speaking to hundreds of landlords every day, and amateur or “accidental” landlords in particular who have been through the stresses involved in non-payment of rent or damage to their property. It’s extremely stressful for people in these circumstances who may need to cover mortgage payments even when the rent fails to come in or have had to deal with both the expense and void periods associated with the repair a damaged property.

Our Guaranteed Rent video explains why, with anything to do with landlord-ism, prevention is always better than cure:

Eric concludes:

” Over 15,000 landlords currently ‘let and forget’ with Northwood. We recently received a testimonial from a landlord who had enjoyed 14 years of the rent paid on time, every time, using our service.

While successive Governments and housing policies may come and go, landlords concerns will always be the same and our Guaranteed Rent service continues to be the market-leading and most trusted solution to address these”.

With over 80 offices around the U.K., there’s sure to be a Northwood agent near you who would be happy to give you a quote for how much your property could achieve on our market-leading Guaranteed Rent service.

Northwood provides a full range of lettings and sales services and is a leading supplier of Guaranteed Rent across the UK, giving landlords complete peace of mind that their rent will be paid each and every month.

Find us on Twitter @northwoodUK or visit our YouTube Channel.

 

 

 

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