Low-income tenants safer bet for landlords
- 23rd November 2009
- Landlord Property News
High-end property not the best investment due to higher maintenance and tenants more likely to fall into arrears.
It is a common assumption that tenants on low-incomes are the most likely to fall into arrears on their rent. However, research by Landlord Assist, an organisation for eviction-assistance, reveals this to be a myth.
The organisation claims that when tenants who had previously enjoyed stable incomes suffer redundancy, their greater financial commitments makes them more prone to arrears than those without the responsibilities of school fees, large credit card bills, or car payments.
This is also exacerbated as such tenants will often have less flexible lifestyles than younger renters on a lower income, therefore less able to move to cheaper housing if necessary.
Managing Director of Landlord Assist, Graham Kinner, also notes that high-end properties will often require greater maintenance than cheaper housing.
According to the organisation, problems arise for landlords letting high-end property when references, and the tenants' long-term ability to pay rent, are not properly checked.
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