Buy to let landlords 'may see more tenant arrears'

04 June 2010

Written by Michael Aglony.

Buy to let landlords may see more missed payments from tenants due to the difficult financial climate, according to Let Insurance Services.

Malcolm Harrison, a spokesperson for the company, said that people in the private rental sector need to be aware of the increased risk of arrears and prepare for it by taking out cover.

"We are still living in really troubled economic times, so it is inevitable that some people are going to have problems with their rents. We are not out of the woods yet," he stated.

His comments follow a recent study by BDRC Continental which revealed that although more than half of landlords had an optimistic outlook for their businesses for the next three months, 34 per cent of respondents had experienced problems with rent being missed.

However, profitability has improved with 79 per cent of landlords reporting that their earnings had increased, compared to 73 per cent in the third quarter of 2009.

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