Landlords 'may want to lower rent'

Posted: 18 Jan 2011 12:58:27 GMT

            Property News - Landlords 'may want to lower rent'

A letting expert has suggested courses of action that can be taken to offset the increase in tenants struggling to pay rent.

Landlords have been advised on courses of action they can take to counter the growing number of tenants struggling to meet their rental payments.

Mark Garner, managing director of LettingZone, claimed that letting agents should consider bringing rent down where property demand is low, but noted that it may not be necessary where it is high.

He also recommended "a full credit check" be carried out before allowing any potential leaseholder to sign a contract.

"I suggest you take out a rent guarantee insurance product before they move in, which will cover you if your tenant stops paying," the expert added.

Last week, the Association of Residential Letting Agents revealed that in the fourth quarter of 2010, 40 per cent of its members reported a rise in tenants having difficulties with their housing costs.

It was suggested that recent job losses and pay cuts were among the factors having an effect.

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