WITH the economic downturn showing no signs of lifting, a challenging year has been forecast for buy-to-let landlords. After seeing at least 15 per cent wiped off the value of their property investments in the past year, it seemed that landlords on variable-rate mortgages could at last breathe a sigh of relief thanks to cuts in the base rate. But already they are faced with a still graver problem – rent arrears. As the credit crunch bites harder and unemployment shoots up, landlords are expecting more and more tenants to fall behind on their rent during the course of 2009.

This could mean a busier time for Landlord Assist, a service run by property law experts to secure property and arrears of rent for landlords of residential property. Graham Kinnear, of Landlord Assist, said: “This year could be a very tricky year for buy to-let landlords. “While the poor housing market could force more people to turn to rented accommodation, a rise in unemployment means more tenants could struggle to meet their monthly commitments.

“This will have a knock-on effect on some landlords and many will have no other alternative but to take further action.” “It is always the landlord’s right to exercise the tenancy agreement and there is demand out there for rented property. But as the economy contracts, landlords are less equipped to sustain non-paying tenants and can no longer rely on the value of their asset increasing.” He said landlords needed to tighten their belts like everyone else and if a tenant couldn’t pay the rent then it could affect their mortgage payments.

For those landlords experiencing problem tenants, they can at least draw comfort from the fact that help is available from Landlord Assist. Landlord Assist deals with problem tenants via a national network of 200 legally qualified advocates. It offers fixed fees rates for landlords and letting agents wishing to deal with tenants with rent arrears and provide legal representation at court hearings.