Tenants Causing Landlord Debt
Landlords are being urged to carry out reference checks on potential tenants to ensure that they do not end up in unecessary debt. The National Landlords Association (NLA) said that up to £6,000 worth of debt could amount if a tenant does not pay their rent over a period of 6 months.
This could put many landlords in the red as they struggle to meet this drop in cash flow, leading them to seek additional debt advice in order so that they can keep on top of their finance problems.
Chairman of the NLA, David Salusbury, commented that landlords who check the financial history will enable them to “to make an informed decision about (the tenants) ability to keep up with rental payments”.
Details which a landlord can find from these checks include many important details about someone’s financial history, such as if they have declared bankruptcy or have CCJs (County Court Judgments) against them.