Expected Increase in Landlords Facing Rent Arrears
The majority of residential landlords in the UK face the challenge of dealing with their tenants falling into rental arrears, according to the statistics from Landlord Assist.
Reports showed that there will be 150,000 tenants having to face legal actions due to rental arrears by the end of the year. As predicted, the number of evictions and tenants with rental arrears will remain at an augmented level and rising even further in 2010.
A survey of Landlord Assist statistically revealed that nearly 75% of all residential landlords in the UK had tenants who fell into rental arrears. 43% of those landlords – in particular – had experienced tenants falling behind on their rental payments over the past 12 months. These figures correspond to the prediction of the soaring unemployment rates – which is expected to remain high in 2010.
Using legal actions to solve the problem on tenants’ default costs a huge amount for the landlords. It is highly suggested that the only simple way to avoid tenants’ arrears is to use preventative measures. Conducting tenants’ reference checks with the appropriate Legal Expenses and Rent Guarantee Insurance cover have become particularly crucial in protecting all residential landlords. These credit checks can confirm to landlords the financial status and reliability of the prospective applicants.
All in all, landlords should purchase Legal Expenses and Rent Guarantee Insurance when they are ready to rent out their properties. For more information on Legal Expenses and Rent Guarantee Insurance and other Landlords Insurance, please visit Discount Landlord Insurance.