According to a recent survey, the number of Section 21 two month notices served against tenants for defaulting on their rent rose by 11% in the last twelve months, but since the number of buy to let mortgage arrears cases has fallen by 12% in the same period, it would appear that difficult economic conditions have not yet had a full impact on the rental market.
These figures follow on from previous comments I have made about the problems many landlords (including myself) are facing with the current economic conditions in this country. Money is tight, and for those living at the lower end of the rental market, finding the cash to pay the rent each month is not always easy.
The days where we can afford to be lenient with our tenants are long gone and the first time a tenant is late with the rent cheque is always a cause for concern. Like all landlords, my rental properties are my business, and if my clients fail to pay on time, my cash flow dries up. And with court orders to evict tenants up by 9% in the last twelve months, it would appear that many other landlords are also not willing to wait around for tenants to sort their finances out.
Is there anything you can do to protect yourself from this problem?
Yes, there is. It is vital you check credit references before finalising a tenancy agreement. Taking the time to do this thoroughly will hopefully save you a lot of grief in the long run!
