With the current cost of living crisis, late rent payments are on the rise, forcing many people to prioritise other living expenses. A recent survey has found that nearly 60% of landlords have seen a rise in tenant arrears, and are owed £725 on average. The survey also showed that landlords face an average of 2.9 late payments per year, but this varies across different regions.
Tenant can’t pay their rent?
One of the main concerns of landlords surveyed by digital mortgage lender Molo, is that tenants will be unable to pay their rent this year. The cost-of-living crisis has also affected the rental market in other ways with 56% of landlords having tenants leave because they could not afford the rent.
Molo’s VP of strategy, Mark Michaelides, said: “Nearly two-thirds of landlords have seen an increase in late rent payments due to the cost-of-living crisis, but this doesn’t always have to lead to extreme measures against tenants.”
What actions should you take to avoid rent arrears?
Experiencing tenant arrears is a frustrating experience, especially financially. Michaelidis said: “Our research found that over half (54%) of landlords have implemented payment plans for tenants facing late rent.”
Our previous blog highlights the steps you can take to prevent financial damage from rent arrears (if you take action quickly). By educating yourself on legal processes, earlier intervention can increase your chances of recovering the rent owed and getting it into your bank account as soon as possible.
What happens if tenants do not pay rent on the Guaranteed Rent Scheme?
A Guaranteed Rent scheme such as Elliot Leigh does what it says on the tin. Your rent is guaranteed every month, regardless of whether the tenant falls into arrears or during vacant periods. We take on the responsibility of paying rent to landlords, providing financial security and peace of mind. Read our blog here to find out more.