Letting agents 'must be wary of tenants defaulting'

News Category: Management

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Letting agents and landlords have been warned of the risk posed to their businesses by tenants defaulting on their rent payments.

Let Insurance Services has reminded agents that although the rented property market is likely to see an upturn in the near future, they must remain prepared for the financial implications of rent arrears.

The firm points to the fact that unemployment rates remain on the rise and suggested that the predicted influx of new tenants in autumn will only increase the danger posed by non-payment of rent.

As a result, it called on those in the industry to make sure they have put precautions in place, such as rental guarantees or intelligent referencing systems.

Michael Portman, managing director of Let Insurance Services, said: "This is the moment when risk management is most crucial. Landlords, potential investors and their agents must take it seriously."

This comes after research group BDRC last month revealed that 30 per cent of landlords have encountered problems with rental arrears in the most recent quarter of 2009.

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