Could letting agents help struggling landlords?

A significant number of landlords could benefit from using the services of a letting agent, as a new survey has revealed many are struggling to cope with tenant arrears.

Research by the National Landlords Association (NLA) has revealed 40 per cent of rental property owners only just earn enough to break even, meaning that if one payment is missed they could encounter financial difficulties, the Press Association reports.

Commenting on this figure, NLA chairwoman Carolyn Uphill stated: “Landlords operate within a business environment and it’s essential that they budget accordingly.

“It’s also essential that landlords carry out checks on potential tenants to minimise their risk of non-payment.”

She added that rental property owners should also be aware tenants can sometime struggle to pay their rent due to circumstances beyond their control. In such situations, she claimed landlords should have sympathy for their renters’ needs.

“Part of this involves investing in good relationships with their tenants so that they are able to be open about any financial difficulties or future plans.

“If the landlord knows what’s happening, they can work with the situation,” Ms Uphill added.

The NLA advised rental property owners to ensure they respond quickly to early signs of a tenant getting into arrears, as currently many landlords wait for a period of weeks or months before taking any action and during this time the problem will have only gotten worse.

It has been suggested a potential cause for this high number of struggling landlords is the fact many are ‘accidental landlords’, who have been forced to rent a property they are unable to sell.

Such individuals lack the experience and know-how of professional landlords and this could explain the difficulties they are encountering. Letting agents that are looking to expand their client base could do well to target this group, as many accidental landlords would likely welcome the assistance provided by an experienced agency.

Image: Lasse Kristensen/Shutterstock

Source: www.rman.co.uk