According to the latest Upad Tenant Survey (Feb 2013), over three quarters of tenants spend up to 40% of their monthly income on rent, a 10% increase compared to just one month earlier, with 4 in 10 stating that they were only renting because they could not afford to buy.

Indeed with rent accounting for an ever growing proportion of income and increases far outstripping salary rises, it is no wonder that tenant arrears are on the rise. LSL report that the total amount of late or unpaid rent reached a staggering £284 million in March 2013, rising £36 million from February.

Commenting on the situation James Davis, CEO of Upad, says,

“I don’t know of any landlord who hasn’t faced rent arrears up close and personal at some point. Here are some simple tips to help avoid arrears: 1. ALWAYS comprehensively reference your tenants no matter how nice they seem. 2. Discuss the prospective tenant’s plans with them. Is this a stop-gap or a long-term choice? And 3. Get to know your tenants. If you have a more personal connection they are more likely to keep you informed if they’re getting into trouble.”

But what can be done? Well with an ever growing proportion of the UK renting and for longer, the suggestion of extended tenancies has been raised which would allow tenants to better plan ahead financially and help to reduce large rent hikes every 6 to 12 months as is often seen when standard Assured Shorthold Tenancies are renewed.

Housing charity Shelter has long called for longer tenancies especially for the 1 million privately rented households with children and with the Upad Tenant Survey revealing that nearly 1 in 3 expects to rent for 5 to 10 years or more, the case is gaining momentum.As James comments,

“From a traditional letting agent’s perspective, shorter tenancies are good news as they get to charge renewal fees or additional payments if a new tenant moves in but from the tenant’s perspective, this can become costly and often unnecessary.

“Here at Upad, we strive to be fair to both tenants and landlords. We do not charge tenant renewal fees and encourage our landlords to treat renters not as cash-cows but valued clients. As a landlord myself I can see the benefit in long term tenancies as it allows the tenant to budget further into the future, reduce any void periods between shorter tenancies and have someone in your property who views it as their home and so will take better care of it.”

With Upad including tailored tenancy agreements as part of their Essential service available at £189 + VAT call 0333 240 1220 or visit www.upad.co.uk to find out more.