Landlords need to manage risk during recession

by Daniel Jones

Landlords need to be aware that some of their tenants may be struggling to pay their rent during the recession, it has been suggested.

In the opinion of the Association of Residential Lettings Agents (ARLA), they should take out rental guarantee insurance and manage their risk effectively to ensure they are not left out of pocket.

Landlords should also make sure that they have done everything correctly regarding their tenancy agreements.

However, the organisation urged that credit checks are essential for landlords even without the economic downturn.

An ARLA spokesperson said: "It clearly is important whether you are in a recession or not. You want to establish that the tenant is going to be a good tenant in the sense that he will look after the property."

The National Landlords Association recently reported that 67 per cent of landlords claim to have had problems with rent arrears in the past.

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Published on: December 16, 2008

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