Posts with tag: break even point

40% of Landlords Just Break Even

Published On: November 9, 2013 at 5:03 pm


Categories: Landlord News


40% of landlords earn little more than enough to break even each month, meaning that just one missed rental payment can leave them weak financially, according to the National Landlords Association (NLA).1

40% of Landlords Just Break Even

40% of Landlords Just Break Even

The research also found that one in three tenants thinks that their landlord is more interested in their earnings than anything else.1

The study was conducted to uncover the impact of missed rent payments and rent arrears. After discovering the effect, the NLA have issued a guide to financial management for landlords and tenants.

Furthermore, the NLA is insisting landlords and tenants to form better relationships, which would reduce the risk of disputes, missed rent payments, and unplanned void periods. The advice will be especially helpful to small scale or accidental landlords, who account for a large proportion of all landlords.

Chairman of the NLA, Carolyn Uphill, says: “Landlords operate within a business environment and it’s essential that they budget accordingly. We recommend budgeting for 10 months’ rent in any 12-month period, to allow for missed rental payments and voids. It’s also essential that landlords carry out checks on potential tenants to minimise their risk of non-payment.

“However, there are instances when tenants are unable to meet their rental commitment; circumstances change and finances take a turn for the worse. In these situations, landlords should be sympathetic to their tenants’ needs. Part of this involves investing in good relationships with their tenants so that they are able to be open about any financial difficulties or future plans. If the landlord knows what’s happening, they can work with the situation.

“Being a successful landlord requires effective communication, which in turn can help to reduce missed payments and voids that can have severe financial implications for many.”1

The NLA’s guides for landlords and tenants can be found at