Landlords 'concerned about tenants missing rent payments'

News Category: Management

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Many UK landlords are worried that they could be forced out of business if tenants refuse to pay rent on their properties, an industry official has revealed.

Lee Dribben, chairman of the Residential Landlords Association (RLA), said landlords can suffer horrendous problems if tenants fail to pay rent on time.

The RLA has received many calls from landlords who have said they are worried about being forced out of business, Mr Dribben noted.

Landlords are dependent on rental income to meet loan repayments, maintain their properties and pay taxes, he said.

They have to meet these requirements, along with regulation such as energy performance certificates and gas safety certificates, even if tenants fail to pay-up on time, Mr Dribben continued.

"Failure to meet financial commitments will result in an adverse credit rating, making it next to impossible for him [landlords] to remortgage or obtain funding for further purchases," he added.

Meanwhile, research from mydeposits.co.uk has revealed that tenants lost more than £15,000 a month between April 2007 and March 2008 by breaking the conditions of their tenancy agreements.

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