We all know why it happens. There is no getting around the fact that there is a higher percentage of rental arrears in houses rented to LHA tenants. This is particularly true now that the government subsidies are handed to the tenant instead of the landlord. But the truth is landlords are costing themselves money by refusing to rent to LHA tenants.
The fact is that 20% of the market comes from this area. This a large portion to write off as unsuitable for your needs. But how to avoid ending up with a tenant who does a runner owing you money or just becomes a colossal pain to get the rent from?
There are ways. There are precautions you can take that allow you to rent to this large section of the market and reduce your risks of having someone who does not pay.
Firstly, get a guarantor, a homeowner guarantor can really reduce the chances of rental arrears. And in the current climate with so many people being new to renting LHA a lot of people are happy to provide one, especially if you are offering decent accommodation at a decent price.
The other thing you can do is contact an agency that deals in tenant references. This will also reduce your risk.
20% is too large a chunk to ignore so most landlords need to find a way round the problem.
