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Thursday, December 11, 2008

Landlords Need to Start Building a War Chest

I was just reading that the NLA were reporting on landlords concerns over rent arrears in 2009 and beyond.

As more redundancy occurs, landlords will need to face the increased risk of rent arrears, as more and more tenants fight to pay the bills.

In a time of high credit levels, robbing Peter to pay Paul may not be possible for many tenants, and many landlords might have to face the fact that any unpaid rent will be dripped back to them a pound a week for the next 40 years, through a court judgment.

In the mean time a landlord may face big holes in their cashflow at a time when they least can afford it.

With the Mortgage Support Scheme due to launch in 2009, most likely not to include buy-to-let property, times may be tough for some landlords.

My advice is for landlords to start a war chest ( something that 'prudent Gordon didn't do ).

It would be worth landlords cutting back hard now, and to start saving as much as they can to guard against the potential of rental arrears in a deep depression,

To the trenches!

Your darling Margo

Bringing landlords warmth in a cold economic climate

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