Many landlords struggle to break even, finds NLA
Published by Daniel Jones
Just one missed payment from a tenant can leave a number of landlords in the UK up against the wall when it comes to meeting their bills for a property.
New research by the National Landlords Association (NLA) has found 40 per cent of landlords earn only a small amount more than they need to break even each month. Of course, this means the failure of a tenant to pay their rent for just one month leaves them in a difficult position.
Landlords often have to pay a mortgage on a property, not to mention normal invoices such as those for gas, electricity, water and council tax. It is therefore imperative that tenants are able to pay the full amount of rent on time each month.
The study also revealed that many tenants see landlords as being interested only in their earnings and not in the wellbeing of the people who live in their homes.
Carolyn Uphill, chairman of the NLA, said: "Landlords operate within a business environment and it's essential that they budget accordingly. We recommend budgeting for ten months' rent in any 12-month period to allow for missed rental payments and voids. It's also essential that landlords carry out checks on potential tenants to minimise their risk of non-payment."
She went on to explain there will always be times where tenants are unable to pay their rent for a particular month. At these times, landlords should be sympathetic as creating a good relationship is a wise move and can help to ensure future payments are made.
The NLA has urged landlords and tenants to work together to minimise the likelihood of disputes occurring and unplanned voids in payment plans taking place.
On the back of the findings, the NLA has decided to launch a brand new guide to financial management that is aimed at both those who own a property and others who simply pay to live in it.
Published on: November 13, 2013
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