Landlords urged to protect rent

Monday, 20 April 2009 8:13 AM

Landlords are being encouraged to find ways to make sure they receive their rent as the recession worsens.

Property website Smartlandlord.co.uk advised landlords to be extra cautious after it released figures showing an increasing number of unemployed people were renting.

A year ago only 3.1 per cent of new tenants renting private property were unemployed but that figure has shot up to 7.8 per cent.

Keshav Thukaram, managing director of Smartlandlord.co.uk, said: "With the social housing sector ill equipped to cope with the extra demand, private landlords are increasingly being called upon to take in unemployed people on benefit.

"There is evidence that some landlords are suffering because benefits aren't being paid on time, so landlords taking this route must ensure they know their rights, and apply to have the rent paid directly by the council if they experience problems."

The numbers of self-employed and retired tenants have also risen. Mr Thukaram urged landlords to run the appropriate checks on new tenants, but also to ensure rents are secure should their tenants' financial circumstances change.

He said: "With the occupation of tenants diversifying from traditional employment, landlords need to make sure they reference tenants to ascertain they can afford the property, and ask for guarantors where necessary.

"But tenant referencing is an indication of a tenant's past and current situation - it is no guarantee of the future.

"This means landlords need to look at new ways to protect themselves, such as rent guarantee insurance and rent on time."

Robert Alderson

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