Rent arrears are a hassle every landlord has to face at some point, and Manchester property accountants can help those with rental properties in the city to manage their exposure to overdue payments.
Figures from the Money Advice Trust show that Manchester City Council was one of the local authorities to make the most extensive use of bailiffs in the past 12 months.
Over 42,000 cases were referred to bailiffs by the council – equivalent to 17% of its total property estate – for reasons including late council tax payments, overdue business rates and parking fines.
While the statistics are not directly related to the private landlord rental property market, they provide a useful rule of thumb guide for how likely tenants in Manchester are to fail to pay.
At 17%, the proportional involvement of bailiffs is equivalent to that of Birmingham, greater than Leeds, and only slightly behind Liverpool, where bailiffs were called in to the equivalent of 20% of the council-managed estate.
Outside of London, only Luton and Merthyr Tydfil, both at 22%, ranked higher – making Manchester tied for fourth place for the use of bailiffs.
Manchester property accountants can help you to determine how to factor rent arrears into your finances – including what to do when you do not receive payment until the following tax year, and the likely impact they can have on property tax in general for landlords with sizeable estates to manage.