Tenants who do not pay their rent would cause "horrific problems" for landlords, especially with the state of the housing market, one advisory service has claimed.
The Residential Landlords Association (RLA), has highlighted the costs which the tenants' rents cover for landlords - tax payments, loan repayments and property maintenance charges as well as covering any empty periods between lets.
Lee Dribben, chairman of the RLA, said: "In the event of non-payment the landlord must still meet his obligations and failure to meet financial commitments will result in an adverse credit rating."
He stated that in the worst case scenario a landlord may end up losing their home due to a tenants' failure to pay rent.
Mr Dribben concluded that some landlords are also currently in danger of going out of business.
Research from mydeposits.co.uk showed that nearly 40 per cent of disputes relating to deposits were due to cleaning issues when a tenant left a property.
News by Adfero for Simply Business - independent providers of business finance, public liability insurance & landlord insurance.
