Rental arrears are on the rise, according to the latest Landlords Panel from the National Landlords Association (NLA).
49% of landlords have experienced rental arrears in the last 12 months and 37% of landlords are concerned about instances of arrears in the months ahead.
The research found that the typical NLA member landlord, with an average portfolio of 12 lettings, has four tenants in arrears and the average arrears owed by tenants is £2,363. Unsurprisingly, landlords with larger portfolios have greater amounts owed to them.
Arrears problems are also affecting small scale landlords (landlords with one letting), including accidental landlords, who make up a large proportion of all landlords. 16% of landlords with one letting are actually making a loss on their investment.
“It is a sign of the difficult economic conditions that so many landlords are experiencing rental arrears,” said David Salusbury, NLA chairman.
“In these circumstances, landlords should work with their tenants to minimise the impact of financial stress. Short term instances of arrears can often be resolved with a sensible repayment plan or a temporary reduced rent arrangement. It is in landlords’ best interests to help tenants through tough financial times where possible.
“Landlords who work collaboratively with their tenants towards sustaining the tenancy for the long term will encourage prosperous tenancies. It is professional and collaborative working that will help ensure the private-rental market remains a promising investment opportunity, in turn helping to bring the economy back to an upward trend.”