As landlords consider how best to gain from the current boom in demand for rented properties, a stark warning from the National Landlord Association (NLA) puts into focus how important it is to choose the right tenant.
The report from the NLA revealed that, of landlords surveyed, 47% of those forced to re- possess their properties did so due to rent arrears. The next most common cause was anti social behaviour which accounted for another 23%.
Fortunately 33% of landlords have never had recourse to possess their properties but those that have, found the cost prohibitive. David Salusbury, chairman of the NLA, said “Gaining possession can be very costly for landlords, especially when it is related to rental arrears. Many landlords have mortgages to pay on top of the expense of gaining possession. One-third of landlords have reported paying between £250 and £1,000 to have tenants removed. This amount is often compounded by late rent payments”
Four out of five cases of possession were resolved inside 5 months, but that still leaves a lot of landlords struggling to get their properties back for over half a year. No wonder then that landlord insurance is such a vital tool to have when incorporating Rent Guarantee Insurance in the policy.
The report follows hard on the heels of advice given to residential landlords by industry experts emphasising the importance of checking the credentials of would be tenants as closely as possible.