Beware of tenants getting in the Christmas spirit
It may all sound a bit ‘Bah Humbug’ but landlords should be extra vigilant when collecting a tenant’s rent throughout the Christmas period in order to avoid arrears.
Rent arrears often peak in December and January as tenants, lured by the call of the high street, overstretch their budget and spend their rent on present for loved ones. However with many landlords reliant on rent to maintain mortgage repayments Christmas joy can soon turn sour.
Rob Denman, Head of GW LET, comments:
“It is so easy to get swept up in Christmas but this can often result in a tidal wave of spending. With increased living costs accounting for the lion’s share of tenant’s budgets, many turn to credit cards and, worse, payday loans to bow to the pressure of Christmas and cover the cost of presents and all the festivities. Then, come January, they are left with a pretty sizeable debt to deal with.
“Landlords may therefore have to adopt a rather Scrooge-like approach to rent collection throughout December and January – particularly if a tenant’s rent contributes to mortgage repayments on the property.
“They may also have to sacrifice their own Christmas expenditure in order to bank some savings should the worst happen and their tenant falls into rent arrears.”
Content correct at time of publication