Property investors are increasingly struggling with tenants who are late or not paying the rent, research from mortgage lender Molo has found.
The financial impact of late rent is significant, as landlords are owed an average of £725 from late rent.
Landlords in the UK are experiencing an average of 2.9 late payments per year.
Mark Michaelides, VP of strategy at Molo, said: “Nearly two-thirds of landlords have seen an increase in late rent payments due to the cost of living crisis, but this doesn’t always have to lead to extreme measures against tenants.
“As a tenant, it’s important not to ignore the problem. I’d advise tenants to communicate promptly, explaining reasons for delays and requesting additional time. Open dialogue can lead to collaborative solutions.
“Our recent research found that over half (54%) of landlords have implemented payment plans for tenants facing late rent. Additionally, tenants can explore government schemes and seek guidance from organizations like Shelter or Citizens Advice for free support and advice.”
Some 59% of landlords say they have seen an increase in late payments amidst the current financial climate.
Late rent payments are only the tip of the iceberg too. Over half (56%) of landlords have had tenants move out as they could no longer afford the rent.
Meanwhile, a further 55% have also found themselves reducing the price of rent to support tenants during this time.
Regional look
Investors in Yorkshire and the North East see the highest amount of late payments each year, at around 3.4.
Those in Greater London are owed the most, at £806, though perhaps this is not surprising given that Molo’s research found higher rental prices in the capital city.
This is followed by those in the East of England (£770) and the East Midlands (£760).
Landlords in the North West are owed the least in late rent payments, but this is still a significant amount of around £661.
