The number of tenants in severe financial difficulty continues to increase, the number of court orders for possession has risen yet again and non-payment, late or partial payment of rent remains the biggest worry for landlords. According to the research carried out by National Landlord Association (NLA) rental arrears are on the rise. In the second quarter of 2012, there were 25,422 landlord possession claims that led to an order being made on the seasonally adjusted basis. This is higher than in the first quarter of 2012 and continues the upward trend since 2010, according to the Government’s quarterly Court statistics. According to the latest Tenant Arrears Tracker by chartered surveyors Templeton LPA the number of tenants in “severe financial difficulty” has also climbed by 8 per cent in the second quarter of 2012, with over 7,000 more tenants having over two months arrears than in the first three months of 2012. In the second quarter of 2012, an average of 100,400 tenants in England and Wales were in severe arrears – an increase of 24 per cent compared to a year ago. This is the highest number on Templeton LPA’s records, since 2008 when this data was collected. The National Landlords Association offers the following advice to landlords experiencing rental arrears: Background checks Appropriate tenant checks needs to be conducted to ensure they are in a position to meet their rental commitment. Set up a payment plan If the tenant is not entitled to additional funds, work with them to arrange a short term solution such as a repayment plan or reduced rent arrangement. Avoid substantial debts If problems with payment continue despite a short term arrangement, it may be appropriate to negotiate bringing the tenancy to an early end in order to avoid accruing significant debts. Be aware of the appropriate procedures In situations where the tenant has failed to meet their rental payments for two months, the landlord is entitled to issue a Section 8 Notice to initiate possession proceedings. This must always be a last resort – professional landlords will favour good, sustainable tenancies over short lived tenancies that result in periods in which their property will lie vacant. * * * * * * * Harringtons Lettings offer one of the lowest arrears rates within the whole Brighton and Hove area With experienced property management team and effective procedures in place, Harringtons Lettings can offer one of the lowest arrears rate within the local area offering their landlords peace of mind that their money will be in their account on time. If you have ANY questions please email us on admin@harringtonslettings.co.uk or call 01273 724000.
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