High income tenants falling into arrears

High income tenants falling into arrears

RESIDENTIAL landlords who rent out more expensive flats and homes to tenants with higher incomes are facing growing arrears, according to Landlord Assist, the nationwide tenant eviction and rent collection service.

While it is easy to assume that lower income tenants are more likely to fall into arrears, the reality is that individuals with higher incomes are feeling the full force of the recession and as such are falling behind on rent payments, says Landlord Assist.

Its managing director, Graham Kinnear, said: “Many landlords take the view that one property at £1,000 per month requires less management and repair than two at £550 per month.

“However, this is not necessarily the case and the situation appears to be changing, as higher earning tenants are bearing the brunt of the economic slowdown.”

To prevent arrears, Landlord Assist is appealing to landlords to get all their tenants referenced before handing over the keys.

Stephen Parry, of Landlord Assist, said: “In the current economic climate, vetting your tenants will go a long way to ensuring that you are likely to receive rent payments.

“We are always staggered that landlords can hand over keys to their properties after one meeting – it really is a false economy.”



source: The Shuttle