In the midst of a challenging financial climate, landlords are facing increasing difficulties with tenants who consistently pay rent late or default on payments, according to a report from mortgage lender Molo.
The research indicates that landlords now find themselves typically owed an average of £725, with an average of 2.9 late payments occurring per year. Mark Michaelides, Molo Vice President of Strategy, highlights the impact of the cost of living crisis, stating that nearly two-thirds of landlords have witnessed a surge in late rent payments.
Michaelides emphasizes the importance of communication in resolving these issues, urging tenants not to ignore problems. He advises tenants to promptly communicate, providing reasons for payment delays and requesting additional time. According to Molo’s research, 54 per cent of landlords have implemented payment plans for tenants facing late rent, demonstrating a collaborative approach to addressing challenges.
The report reveals that 59 per cent of landlords have observed an increase in late payments, while 56 per cent have experienced tenants moving out due to an inability to afford the rent. Additionally, 55 per cent of landlords have temporarily reduced rent to support tenants during these challenging times.
Geographically, landlords in Yorkshire and the North East face the highest number of late payments each year, averaging around 3.4. Meanwhile, landlords in Greater London find themselves owed the most, with an average of £806.
In response to these challenges, Michaelides suggests that tenants explore government schemes and seek guidance from organizations such as Shelter or Citizens Advice for free support and advice. As the financial pressures persist, both landlords and tenants are urged to maintain open dialogue to find collaborative solutions to rental payment challenges.