Property investors are increasingly struggling with tenants who are late or not paying the rent, research from mortgage lender Molo has found.

The financial impact of late rent is significant, as landlords are owed an average of £725 from late rent and landlords in the UK are experiencing an average of 2.9 late payments per year.

Mark Michaelides, VP of strategy at Molo, said: “Nearly two-thirds of landlords have seen an increase in late rent payments due to the cost of living crisis, but this doesn’t always have to lead to extreme measures against tenants.

“As a tenant, it’s important not to ignore the problem. I’d advise tenants to communicate promptly, explaining reasons for delays and requesting additional time. Open dialogue can lead to collaborative solutions.

“Our recent research found that over half (54%) of landlords have implemented payment plans for tenants facing late rent. Additionally, tenants can explore government schemes and seek guidance from organizations like Shelter or Citizens Advice for free support and advice.”

The report added that 59% of landlords say they have seen an increase in late payments amidst the current financial climate.