Letting agents are being urged to focus on arrears management in light of the Renters’ Rights Bill returning to the House of Lords today.
The legislation will extend the eviction threshold in England for tenant arrears to three months before an eviction notice can be issued, up from the current two months.
Dr Neil Cobbold, commercial director at Reapit, said: “With the Renters’ Rights Bill set to extend eviction timelines, agents who don’t act immediately on arrears could find themselves stuck, struggling to collect late rent, incapable of evicting, and unable to give landlords the assurance that they’ll be able to take legal possession of their properties within a reasonable time of tenants defaulting.
“That’s why automation and early intervention are essential strategies with managing arrears for any agency that wants to protect their income and grow their landlord portfolio.”
Current court delays mean landlords already wait on average 27.9 weeks to repossess a property from the point an eviction notice is served.
The average rent loss per property where someone is being evicted is £12,708 across the UK, rising to £19,223 in London.