Four in ten landlords earn such slim margins from their rental income that just one missed payment by a tenant can cause serious difficulties.
The finding emerges in a survey by the National Landlords Association.
Carolyn Uphill, chairman of the NLA, said: “Landlords operate within a business environment and it’s essential that they budget accordingly.
“We recommend budgeting for ten months’ rent in any 12-month period to allow for missed rental payments and voids.
“It’s also essential that landlords carry out checks on potential tenants to minimise their risk of non-payment.”