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27/10/2008
Landlords can have 'horrific problems' if tenants don't pay rent |
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Tenants who do not pay their rent can put their landlords into serious financial difficulty.
According to the Residential Landlords Association (RLA), the extent of the monetary problems that can arise can vary depending on the individual situation.
However, Lee Dribben, chairman of the RLA, explained that every landlord will have an array of legal and financial obligations that they must meet, which can add to the problem is the tenant dies not pay their rent.
These include taxes, mortgage repayments, the up-keep of the property, energy performance certificates and deposit protection.
Mr Dribben said that in the worst circumstances a landlord could potentially have to give up their own home.
He commented: "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."
Mydeposits.co.uk, the tenancy deposit protection scheme, protected 200,000 individual deposits worth £177 million during its first year of operation from April 2007 to March 2008. |
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