As 2011 slips into the second month of the year, it is a good time for landlords to make sure everything in the business is ticking over as it should be. Necessities such as property insurance, health and safety checks and tenant satisfaction should be checked at the turn of the year, and at the beginning of February always check that the rent for January has been paid.
A finger on the pulse
The Christmas and New Year period is traditionally the most expensive time of the year for us all. It is no different for tenants and statistics prove that January is the month that attracts arrears unlike any other. Landlords should be aware of this and be on their guard.
It is imperative that landlords make themselves aware of any delay in rental payments because even though they may well have landlord insurance as protection, the situation can soon get out of hand. This is often averted if the landlord can nip the trouble in the bud and help the tenant realise that rent should be the last thing to stop paying and not the first.
Difficult times ahead
2011 promises to be a difficult year for many and although the letting sector looks to be in for a better year than most it is no good having a tenant if he isn’t paying the rent. The cut in housing benefit, the cut in public sector jobs and the hike in student fees are all potential trouble spots for landlords and their tenants.
The rental arrears figure for December 2010 was put at 11.7% by one survey, with the levels in many cities much higher. The knock on effect of this is that many landlords then struggle to pay their mortgage. The situation for landlords will be greatly enhanced if the pressure now being exerted by various organisations representing investors in the property market manage to persuade the Government to pay rent directly to the landlord when the tenant is receiving Housing Allowance. Housing Minister Grant Shapps has indicated in the past that he is sympathetic to the idea and it would certainly help to improve the rental arrears figure throughout the UK.