Rent arrears advice given to buy-to-let mortgage holders

Date:Wednesday 22nd April 2009
Author: Max Freedman

People with buy-to-let mortgages should ensure they conduct thorough checks on potential tenants to avoid rent arrears.

This is according to Young London, which suggested that given the ongoing recession and with a rising number of 'accidental landlords' who are unable to sell properties and are therefore forced to rent them out, it has never been more important to avoid rental payment problems.

The firm suggested that landlords should request at least three months' worth of bank statements from potential tenants in order to assess the state of their finances.

In addition, buy-to-let investors should seek references from the employers of possible renters and should aim to speak to their previous landlords to find out whether they were reliable.

Issuing similar advice recently was Smartlandlord.co.uk, which urged buy-to-let mortgage holders to consider taking out rent guarantee insurance in order to protect them from financial problems if their tenants fail to pay up.