50% of evicted tenants didn’t pay their rent

50% of evicted tenants didn’t pay their rent

11:57 AM, 25th October 2010, About 14 years ago

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Tenant Eviction CartoonAlmost 50% of tenants evicted by private landlords find themselves on the street because they do not pay their rent.

The other main cause of friction between landlords and tenants is antisocial behaviour, with 23% of landlords reporting this as a cause for eviction.

The figures come from two sets of recent research by the National Landlord Association (NLA).

The NLA found that two out of three landlords had to resort to eviction for dealing with problem tenants.

Of those who had taken tenants to court to repossess a property, eight out of 10 reported the process took at least five months to resolve

NLA chairman David Salusbury said: “Gaining possession can be costly for landlords, especially when it is related to rental arrears. Many landlords have mortgages to pay on top of the expense of gaining possession.

“One-third of landlords have reported paying between £250 and £1,000 to have tenants removed. This amount is often compounded by late rent payments.”

An earlier report found one in five landlords have had tenants in rent arrears during the second quarter of 2010 (April – June).

This was a slight improvement on the previous quarter, when 24% reported tenants in arrears.

The average amount of outstanding rent arrears dropped from £978 in the first three months of 2010 to £799 in the second quarter.

“Rent arrears are a serious problem for landlords all over the UK. It is good to see the latest data which represents a small improvement in that more tenants are keeping up with their rent payments and not putting pressure on their landlords who may well have mortgage repayments to consider,” said Mr Salusbury.

“It is critical that tenants and landlords communicate and work together to tackle financial problems before they result in a loss of rent or even the tenancy.”

Landlords and other property groups claim that paying local housing benefit direct to tenants instead of landlords contributes to rent arrears as the cash does not find its way to property owners.

Note from The Money Centre

The Money Centre has a solution to the rent arrears problem which provides rent collection and regular monthly rental income whether the tenant pay or not for a cost of just 6% of rent.

For further details please click here.

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