Landlords warned of 'runaway tenants'

News Category: Industry News

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Credit crunched tenants are bailing out of their rental accommodation to avoid paying up on rent, new research has shown.

Data from the Letting Protection Service (LPS) showed that 1,232 landlords experienced a runaway tenant in November 2008, up from 122 in the same month a year earlier.

This comes after buy-to-let lender Paragon Mortgages found that around a third of landlords had never conducted credit and reference checks on prospective tenants.

John Heron, managing director at the firm, warned last month that tenants leaving a property when behind on their rent payments is a more common problem than many people realise.

Kevin Firth, director of the LPS, said landlords who take out insurance on the rent would be protected from this problem.

"But there could be thousands who have not, and in the current economy they will undoubtedly suffer from that loss," he added.

Tenants who abandon their properties could be breaking the law and might also negatively affect their credit rating, Mr Firth noted.

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