As the number of tenants in severe financial difficulty climbed by eight per-cent in the second quarter of 2012, with an additional 7000 tenants, than in the first quarter of 2012 now over two months in arrears, Belvoir Sheffield, leading letting agent in Sheffield is warning landlords that careful property management could reduce the risk of non payment of rent.
According to the latest Tenant Arrears Tracker by Templeton LPA, 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.
Rick Flay, Director at Belvoir Sheffield, who offer a wide range of property to rent in Sheffield, said: “The number of tenants in financial trouble is certainly on the increase. As rents have been rising, wages have been falling and many have lost their jobs. These factors have compounded to push many households over the edge.
“DIY landlords are among those who have been mostly affected by this increase inarrears, because they are conducting their own credit checks, gathering their own references and maintaining the landlord-tenant relationship themselves.
“In these tough economic times it is essential that landlords seek the advice of a professional lettings agent such as Belvoir to minimise this risk.”
In recent months the press have reported an increase in yields, which has in turn resulted in many landlords raising their rents to cash in on the market, but many have found that this adds to the pressure on the tenants resulting in yet more void periods.
Rick, whose letting agency on Campo Lane in Sheffield, specialises in providing flats to let in Sheffield added: “A landlords income is still well above what was being achieved two years ago, my best advice to the savvy landlord would be to reduce their rents slightly to make their properties more competitive. I would also recommend a no obligation meeting at Belvoir Sheffield to see what expert help is available.
“Proper credit checking is essential. We have had very few problems with seriously late rents, due to firstly conducting proper checks, and secondly having proper systems in place.”
Belvoir Lettings Agency Sheffield is the One Stop Specialists for Lettings including Property Management, Tenant Find, Investment and Wealth Management Advice, Fit-outs and Renovations, Furniture Packs and Investment Property Insurances and Buy to Let Mortgages.
