Property buyers with buy-to-let investments have been warned that rental arrears are rising, following research by the National Landlords Association (NLA). Nearly half (49 per cent) of landlords have experienced rental arrears in the last 12 months, while 37 per cent are concerned about arrears in the months ahead, an NLA survey revealed. A typical member landlord with a portfolio of 12 lettings has four tenants in arrears, each of whom owes an average of £2,363.
Small-scale and “accidental” landlords are also suffering, with 16 per cent of landlords who have only one letting making a loss on their investment. The NLA advised its members to always carry out background checks on tenants to ensure they have a good history of meeting rental commitments, and working together with tenants who cannot pay to find a mutual solution.
As a last resort, the NLA reminded landlords that they are entitled to issue a Section 8 Notice to initiate possession proceeds if a tenant has not paid for two months.
