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Over half of tenants living in corporate blocks have missed rent payments

Shocking figures from block managers given to a property consultancy have revealed the extraordinary impact on tenant’s ability to pay their rent on time – or in some cases at all.

The ratio of tenants living in large UK corporate residential blocks that are not paying their rent either on time or at all has increased to more than 50% for the first time in living memory, according to a report by Remit Consulting, which looked at 1,654 corporate residential properties and 14,937 leases.

It then compared collection rates to the same time last year and found that residential collection rates have dropped from 79% paid on the due date to 44%, and from 90% to 47% for those collected within seven days of the rent due date. The figures are even weaker for service charges. Last year 73% were collected on the due date but it’s now dropped to 29%.

“While property managers are working hard to mitigate the impact of the pandemic and further research is needed in the coming days to get a clear picture on how agreed rent and service charge ‘holidays’ are impacting collection rates, these figures are likely to make uncomfortable reading for landlords, asset managers and investors,” said Steph Yates, a senior consultant at Remit Consulting.

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