The National Landlords Association (NLA), which provides landlords with a tenant referencing service through NLA Tenant Check, has published research showing that 71 percent of landlords expect rent arrears to increase during 2009.

Of those questioned, just one percent felt that rent arrears would decrease next year, while 28 percent thought there would be no overall change.

The research also revealed that 67 percent of landlords have experienced problems with rent arrears in the past, while 37 percent are having payment difficulties with current tenants.

The results paint a worrying picture for some landlords, who are clearly concerned about the effect the credit crunch is having on their tenants’ ability to keep up with rental payments.

At a time when everyone is keeping a closer eye on their finances, landlords need to be able to rely on the steady income received through rent - the consequences of not receiving rent could be very serious in terms of potential repossession and impact on housing supply.

NLA Chairman David Salusbury said: “Landlords are clearly concerned that tenants will be unable to keep up with rent payments over the next 12 months. It is a worrying situation to be in and landlords need to do all they can to ensure they are regularly receiving rent.

Regular communication between both parties is essential to head off major problems.

“The money received through rent is vital and with 71 percent of landlords predicting that rent arrears will rise in the next 12 months, it is more important than ever that landlords are able to make an informed decision about the financial worthiness of the tenants they are taking on.
“A simple credit or tenant reference check before they make a decision will give landlords some additional peace of mind that their tenants can be relied upon to meet rent payments.”

For more information on NLA Tenant Check, visit: www.landlords.org.uk.