28
Apr
Landlords 'should not panic' if tenants can't pay rent
Investors in residential property should not panic if their tenant
gets into financial difficulties - such as unemployment - during
the recession, it has been advised.
The Young Group of property portfolio managers has said that legal
action is a last resort, with one of the first steps that can be
taken being to see if the tenant is eligible for Local Housing
Allowance.
Another option is to let the resident break their tenancy agreement
and leave early if they can be easily replaced, as any losses this
incurs could be counterbalanced by the lack of hassle and the
reliability of cashflow that bringing in a new tenant could
provide.
The body suggested actions landlords can take before any problems
arise include establishing a good relationship with tenants to know
quickly about changes to employment and taking out insurance
against non-payment.
Recent figures from smartlandlord.co.uk revealed that the number of
unemployed tenants has more than doubled in the past year from 3.1
per cent of the total to 7.8 per cent.
