Just one missed rent payment by a tenant can cause serious difficulties for four in 10 landlords who are letting their properties on slim margins, according to a recent survey by the National Landlords Association.

Given that rent arrears are reportedly becoming the fastest-growing debt problem in the UK, this is troubling news.

The Money Advice Trust says its telephone helpline received nearly 20,000 calls from people behind with their rent during the first nine months of 2013 – a 37 per cent increase compared with the same period of 2011.

So, what can landlords do to minimise the risk of their investment suffering as a result of their tenant falling behind with their rent?

At Jordan’s its levels of rent arrears are exceptionally low compared with the wider industry – just 1.1 per cent of its managed tenancies are in arrears compared with an industry figure of 6.6 per cent of all rent late or unpaid in November 2013.* Jordan’s put this down to two key factors – careful vetting of prospective tenants before allowing them to enter into a tenancy and proactive management throughout the tenancy.

Jordan’s rigorous vetting procedure includes a detailed interview and assessment of the tenant’s ability to afford the rent, full credit and ID checks, proof of residency and references from employers, former landlords and banks.

Stringent checks are also carried out on guarantors should they be required. All this minimises the risks, but what happens if a tenant does fall behind with their rent?

The most common reason among Jordan’s tenants for getting into arrears is an unforeseen change in circumstances such as losing their job or splitting up with a partner. No amount of tenant vetting can prevent such events occurring, but managing the situation carefully can minimise the landlord’s losses.

Jordan’s know from experience that being proactive and communicating with tenants who are having difficulty paying their rent on time means most rent arrears cases can be satisfactorily resolved without the need for the landlord to go to court. In all cases it is essential to serve the correct legal notice at the correct time to protect the landlords’ interests.

For some landlords, rent arrears can mean they are unable to pay their mortgage or other essential living costs. Even those with a financial cushion will find their investment in jeopardy if they experience ongoing loss of rent.

For those wanting to negate the risk entirely, paying extra for a rental warranty is an option. However, not all warranties are the same, and landlords must read the small print carefully to ensure they are getting the level of cover they need.

Landlords using Jordan’s unique Premier & Rent Guarantee service are guaranteed to receive their rent regardless of whether their tenant pays. Any legal fees they may incur in regaining possession of their property are also covered.

Mary Targett has a wealth of lettings experience and an outstanding knowledge of the local lettings market. For advice you can trust on all aspects of letting or renting in Warrington contact Jordan’s on 01925 474747, email warrington@jordansrentals.com or drop in at 80 Sankey Street, Warrington, WA1 1SG.