'Carry out tenant checks' to help avoid arrears

Rent guarantee insurance and tenants referencing services may be vital for landlords at the moment, as the Association of Residential Lettings Agents has warned the number of people falling into arrears could rise next year.

Ian Potter, operations manager at the body, noted there is not enough housing stock to meet the demand from potential occupants.

It has been frequently reported recently that this situation is putting upward pressure on rents and landlords' profits.

The Royal Institution of Chartered Surveyors' latest Residential Letting Survey showed 15 per cent more respondents saw an increase rather than a fall in yields in the three months to October, while a net balance of 19 per cent recorded rises in the amount of money occupants are having to pay for their accommodation.

This is good news for landlords, but Mr Potter cautioned that some tenants may find it difficult to keep up with their rent.

"While it is impossible to know whether someone will be solvent in the future, it is important to carry out relevant checks on a potential ... tenant, to look for signs of financial instability," he explained.

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Posted by Royston Hunter