Debt causes rent arrears for landlords

Personal debt is being blamed for one in five landlords experiencing rent arrears over the last three months.

This is according to the National Landlords Association, which shows that the average amount owed by renters is just shy of £800 (£799).

David Salusbury, Chairman of the NLA remarks that "rent arrears are a serious problem for landlords all over the UK". He adds that "it is critical that tenants and landlords communicate and work together to tackle financial problems".

People who are struggling to pay their rent should consider getting a Debt Management Plan. This will help them sort out their debt and make sure that priority bills, like rent, get paid off first.

Kevin Still, director of Atlantic Financial Management, says: "Dealing with early stage rent arrears should be a priority for many private landlords and Residential Letting Agents.

"And one option could be to encourage tenants to look at debt management as a way to get themselves back in control of their finances. The rent and repayment of any arrears would be treated as a priority in a Debt Management Plan, along with council tax, utilities and critical insurance. And that means landlords will get paid before other unsecured debts."

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