A large proportion of landlords would struggle financially if their tenant missed just one payment. This startling finding comes as NLA published their most recent findings from survey of landlords and tenants.
The survey has revealed that 40% of landlords are little prepared for situations where they may not receive the rent (resulting from either void period or missed rent payment from the tenant). This can have serious consequences to landlords’ finances as this may mean a delay in paying a mortgage.
NLA commented urging landlords to think about this matter as a business matter and simply plan their finances accordingly. We agree with them suggesting that landlords should budget for 10 months’ rent in a year as this allows for situation like void periods or missed payment from tenants.
A very good tool to protect the ‘business’ is rent guarantee insurance. There are number of different products on the market and Martin & Co also has such product on the offer.
Sam Zalewski, director of Merthyr Tydfil office said: ‘The findings do not really come as such a big surprise. I’m regularly speaking with landlords who must receive their rent in order to meet their financial obligations – usually mortgage payments. Sometimes the situation is not even the fact that the rent payment is missed but simply that it comes a day or two later due to payment date falling on the weekend, bank holiday or such. We always strive to do our best and to assist our landlords. A good example is the fact that even though our Terms of Business for Landlords say the rent will be forwarded to the landlord within 7 working days from the date we receive it, we actually strive to make the payment the very next working day.’