Unpaid Rent – Landlords Owed £800m
A third (32%) of landlords in the UK – approximately 500,000 – say they have experienced unpaid rent in the past 12 months, according to research from the National Landlords Association (NLA).
The research shows that a typical landlord faces £1,649 of unpaid rent each, totalling £850m worth of rent arrears across the UK.
The NLA research also shows that one in five (22%) landlords in the UK – approximately 300,000 – are worried that their tenants won’t be able to keep up rental payments over the next year.
The research supports the launch of the NLA’s latest campaign: rent, risk resolve. The campaign aims to highlight four of the biggest risks facing landlords and help them to minimise the impact on their lettings business:
Rising interest rates
Local landlord licensing and regulation
The introduction of rent controls
NLA chairman Carolyn Uphill said: “All landlords will be affected by one or more of these issues to some extent somewhere down the line and it’s vital to keep in mind the major threats to the success of your business.
“Regardless of the size of your portfolio the potential impact of these risks can be devastating on both the business and personal life. As the largest landlord association in the UK, we have a duty to support and advise on how to plan ahead effectively and manage these risks.”
The first focus of the NLA’s campaign will be the risk of rent arrears. The NLA has produced a guide to support landlords to deal with the problem.
A landlord’s guide to rent arrears enables landlords to spot potential arrears early and provides strategies to put in place to mitigate the impact. To find out more about the campaign, or to download the free guide, visit https://www.landlords.org.uk/rentriskresolve
Central Housing Group’s ‘Guaranteed Rent’ Scheme protects landlords from the substantial risk of rent arrears highlighted in this article. Our landlords are paid an agreed monthly Guaranteed Rent for the duration of the term of their contract regardless of their tenants’ financial or employment circumstances and regardless of whether their property is occupied or not. Consequently our landlords have complete peace of mind knowing they will not be impacted at all by the risk of incurring rent arrears or rent loss during void periods, in contrast to those landlords that let their properties in the private rented sector, with all the attendant risks and exposure of doing so, as highlighted in this article.
Landlords – please carefully consider the risks you run by choosing to let your property privately when, instead, you can let your property on our ‘Guaranteed Rent’ Scheme and protect yourself from any rental loss exposure. As a tendered supplier to many of our Council clients, our accounts are audited annually and are subject to regular scrutiny by our Council clients – landlords can therefore have complete confidence in our ability to ensure they will receive their agreed rent on a Guaranteed basis for the duration of the term of their contract with us.
If you are interested in finding our more about our ‘Guaranteed Rent’ Scheme, currently operating in north, east & west London, please call us today on 020 8447 1222.