Landlords urged to check tenant references as arrears rise
Posted by Lucy Wooldridge
Landlords should make use of the property management services offered by residential lettings agents to help avoid taking on tenants that fall into arrears.
That is according to the Association of Residential Letting Agents (ARLA) which has noted a rise in tenant arrears rates in recent months.
A survey of member agents by the organisation found that, in the final quarter of 2011, over 39.2 per cent reported an increase in tenants struggling to pay their rent, up from 36.7 per cent the previous quarter.
ARLA speculated that this rise could be down to the effects of falling household income coupled with increased job uncertainty in the current economic environment.
"It could be that increasing rental arrears is a sign that the wider economic malaise is having a tangible impact on personal finance - some consumers may have reached the limit of their access to finance, while others may be cutting back as many commentators have predicted," said the association's president Tim Hyatt.
As such, it could be particularly important under the present circumstances that landlords use tenant referencing services to help them avoid taking on those who are unlikely to be able to meet rent payments, something residential lettings agents could help them with.
"In tough economic conditions both landlords and tenants can find themselves struggling to keep up with rent or mortgage payments," said Mr Hyatt.
"It is therefore more critical than ever to take references and conduct thorough research before signing a tenancy agreement. Seeking advice from a professional, licensed letting agent is the best way to ensure tenants and landlords' rights are protected."
Meanwhile, the ARLA survey also revealed that an average 34 new tenancies were signed per ARLA member office in the fourth quarter, the same figure as in the preceding three months.
Social media