Residential landlords and letting agents have been urged to obtain guarantors or insurance products to protect themselves from the financial consequences of tenants falling into arrears.
The call from the National Residential Landlords Association (NRLA) followed reports of some landlords asking for rent advances from prospective tenants worth as much as £10,000.
The Tenant Fees Act, which has been in force since 2019, prevents landlords and letting agents from demanding large deposits and admin fees at the start of a tenancy.
However, landlords can still ask for substantial rent advances.
While the trend has generated negative press for landlords, recent figures show that more than 800,000 renters in the UK are in arrears, meaning the risk to their financial footing is very real.
Nevertheless, the NRLA emphasised that other options are available to mitigate the risk of defaulting tenants.
A spokesperson said: “We would encourage landlords to look for alternatives to asking for high levels of rent upfront.
“Where necessary, it is usually simpler to obtain a guarantor or suitable insurance product.”
Lorraine Walker, a Solicitor with Mander Hadley, said: “The laws that regulate landlord and tenant agreements can be complicated but it is important that you are both aware of your rights and comply with your obligations. Failing to do so can have serious financial and sometimes even criminal penalties.”
For help and advice with all landlord and tenant matters, please get in touch with us.
Mander Hadley Solicitors is not only a long established firm, but is vibrant and successful, with a forward thinking approach.
Latest posts by Mander Hadley (see all)