If you raised the rent would your tenants fall into arrears ?
As the Chancellor puts the finishing touches to his Budget, due to be delivered tomorrow, coupled with the government stating that the UK’s economy is on the road to recovery – LRS would like to ask are your tenants flush or if you raised the rents would they fall into arrears?
Business in the big cities seem to be doing well, with over 500 bankers receiving a million+ in bonuses, but the man in the street is still struggling to pay the bills.
According to a survey from researcher Survation, which was conducted on behalf of Unions21, more than seven in ten (73%) employees have seen their wages fall against the cost of living and just 4% of respondents said they saw their take home pay rise [below].
Coupled with rent arrears now the fastest growing debt dilemma in the UK for private renting tenants, as well as the most hidden, what will happen if interest rates go up?
Landlords will either need to raise the rents to take into account their interest rate rises or we may see an increase in “bad landlords” because they will not be able to afford to keep up with essential building maintenance on their buy to lets.
Ask yourself this question : are your tenants flush or if you raised the rents would they fall into arrears???
- As a landlord/letting agent/PRS tenant :
- Are you just coming up for air?
- Or are you still struggling to stay afloat?
- How did last years budget affect you / your tenants / your business ?
- What would you like to see in tomorrows budget?
Whatever your views are on the matter please share them HERE with the LRS community.
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