A large proportion of tenants may be “unaware” that failing to pay their rent could lead to debt management problems for landlords.
Tom Entwistle, director at LandlordZONE, noted that property owners can “find themselves in difficulty through no fault of their own”, such as occupants defaulting on rental payments.
“Tenants should be aware that the financial standing of their landlord is an important consideration,” he advised.
However, if the “worst should happen” and a lender moves to take a home away from an owner, a court may be able to delay repossession until occupants can find somewhere else to live, Mr Entwistle explained.
His comments come after Citizens Advice, along with charities Crisis, Shelter and the Chartered Institute of Housing launched a campaign for more protection to be offered to tenants in this situation.
The groups are lobbying the government for a change in the law on this issue.
By Jamie Price