The bedroom tax is having a big affect on the way in which landlords manage properties.

With the bedroom tax in full swing, many tenants are now struggling to keep up with their rental payments or are being forced to downsize properties, so where does this leave landlords?

Not only may many landlords already be struggling with tenants who can no longer afford to live in their properties, but the Universal Benefit, which sees tenants having to pay the landlord directly, will be adding fuel to the fire. 

As a private landlord, if you’re choosing to run your tenancy agreements as a business, it will pay to keep up to date with the latest legislation as there will be requirements from you to make any alterations to your properties where people living on benefits or with disabilities may be living. You may have already noticed an increase in the number of tenants that are living off benefits and are looking for a property to downsize to in order to avoid paying the bedroom tax. 

The changes to the way in which landlords are paid could mean that you are having to face rent arrears and late payment issues. Before making any rental agreements, pay close attention to your current rental contracts, you may also want to consider your debt collection policies and be aware of possession proceedings. Although it’s not nice to consider these methods, if you’re running your tenancy agreements as a business, you need to make sure that you are aware of yours and your tenants’ rights, and that you don’t leave yourself short due to your tenants shortcomings. 

You may find that a lot of tenants are suddenly being unable to make payments or are having to pay more than expected, so it would be wise to assess whether the property will be classed as having a spare room when making a rental agreement with tenants. Be sure that they know the consequences for late or missed payments before they enter into an agreement to help avoid difficulties further down the line. To ensure the best for your business, make sure that your tenant knows the requirements from them as a tenant, and that your agreements clearly lay out what your proceedings are if they are unable to continue making rent payments.