A survey carried out by an online letting agent has found that a third of landlords are considering selling up and leaving the private rental sector.
Many of those interviewed claimed problem tenants were making the PRS nonviable. They cited rent arrears and property damage as their biggest problems.
One-quarter of landlords have ended up with huge bills when tenants have caused damage to the property. One landlord said he had a bill for £16k. In most cases, deposits paid by tenants at the start of their tenancy don’t cover the damage caused. Nearly half of landlords have had problems with tenants falling behind on the rent. 47& say their tenants don’t pay the rent on time, which causes cash flow problem.
Sadly, it is usually good landlords who bear the brunt of these problems. Most landlords try very hard to keep tenants happy and maintain a good working relationship with them. Unfortunately, 37% of landlords say difficult tenants are their main problem.
More than half of all landlords are ‘accidental landlords’ with only one property. These landlords are most vulnerable to problem tenants and rent arrears, so it is hardly surprising that serious problems are making them reconsider their investment. In many cases, rental payments cover the mortgage payments and not much else, so rent arrears or a large bill can cause real stress.
Other problems reported by stressed landlords include tenants refusing to leave and extra people living in the property without permission.