Insurance News Archive

Tenant non-payment can cause landlords 'horrific problems'

The implications for landlords of tenants defaulting on their rent have been highlighted by an expert.

Lee Dribben, chairman of the Residential Landlords Association (RLA), said the worst case scenario for a landlord with an occupier not making payment is "losing his own home".

He pointed out rent not only allows property owners to pay for the cleaning and maintaining of the abode but it permits them to meet their own mortgage and tax payments.

It is also used to cover central government and local authority requirements, he said, including deposit protection, energy performance certificates, gas safety certificates and other regulations.

Mr Dribben remarked: "In the event of non-payment, the landlord must still meet his obligations and failure to meet financial commitments will result in an adverse credit rating making it next to impossible for him to remortgage or obtain funding for further purchases."

According to mydeposits.co.uk, landlords or letting agencies were permitted to keep tenants' deposits in 11 per cent of the disputes arising between April 2007 and March 2008.

27 Oct 2008