One of Julia Roberts’ few poor choices in films, Runaway Bride was memorable for all the wrong reasons. Still, if I’d been forced into that frothy meringue of a wedding dress I probably would have been tempted to hotfoot it too. Now there’s a new section of society attempting to renege on commitment as tenants abandon their properties to avoid paying the rent…
As unemployment here in the UK continues to soars heavenward, new research has shown that the number of tenants making a break for it and reneging on their rent commitment has skyrocketed.
The latest figures from the Letting Protection Service (LPS) have revealed that the number of landlords who are now claiming for lost rent has soared.
Whilst at the end of 2007, just 91 landlords had to deal with the inconvenience of a runway tenant, but by late last year, this number had increased to a whopping 1,286.
The National Landlords Association recommends asking for a reference from a prospective tenant’s employer to confirm their employment and salary.
This also gives the landlord a contact should the tenant runaway. Taking a deposit is a must, as is asking for references from some of their previous landlords.
The tenancy deposit scheme, with which all rental properties must now be registered, also goes someway to helping cut down runaway tenants.
Kevin Firth, Director of the LPS, said, “Firstly we would advise tenants that running away from financial difficulties is never the best way to deal with them.
“It could have a negative impact on your credit rating and could potentially mean you are breaking the law,” he added.
What can landlords do?
A new insurance scheme designed specifically for landlords has been introduced by Endsleigh.
The rental insurance product, called ‘Reference PLUS’ offers a tenant reference service –which is provided by a credit rating agency – and a rent guarantee insurance policy all in one.
Carlos Thompson, General Manager at EndsleighLet, said, “As the recession intensifies there have been a significant increase in enquiries from letting agents and landlords asking for advice on how to deal with tenants who fail to pay their rent.
With increasing numbers of tenants defaulting on their rent payments, this new service could help to ensure that landlords aren’t left in the lurch and out of pocket.
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