Tenants named and shamed by estate agent's 'Rent dodger lives here' signs

Signs naming and shaming tenants who have stopped paying their rent have been erected on houses as the credit crunch puts pressure on landlords.

So far two yellow, white and black signs have been fixed to the front walls of houses with the words "Rent dodger lives here" printed on them.

Neil Heffey, managing director of Sutton Estates Liverpool, thought of the idea after repeated attempts, including letters, appointments and calling on the houses, to get in touch with tenants for rent failed.

Mr Heffey said: "There are a few tenants who have ignored letters and are not responding to any form of correspondence.

"Most people can avoid answering the door but they can't avoid the sign.

"We've only put up two so far and we hope the message gets across.

"If you are in hardship and arrears we can negotiate. If there is a problem you cannot ignore it.

"We are not looking to embarrass people but to safeguard landlords' interests."

He said landlords who did not receive the rent for their properties would not be able to make repayments on the mortgages for the houses.

When asked whether landlords were feeling the pressure from the credit crunch, Mr Heffey said: "Oh certainly. If you have a late payment on your credit file you won't be able to get another mortgage."

The National Landlords Association, the leading representative body for private residential landlords, condemned the 'naming and shaming' practice.

Simon Gordon, NLA's Head of Communications, said: “It is surely just a matter of time before someone gets hurts. This kind of behaviour will only serve to alienate the tenant and the authorities are certain to take a dim view. This practice is almost certainly illegal.

“While we understand the threat to both landlords and letting agents of tenants failing to keep up with their rental payments, this form of public humiliation is a recipe for disaster and does nothing for the reputation of the sector.

“The credit crunch affects everyone. The bottom line is if a cash-strapped tenant is consistently failing to pay the rent, then the landlord should seek possession of the property as soon as possible and cut their losses. It’s then up to the landlord to pursue the tenant for monies owed through the proper and legal channels.

“The NLA would advise landlords and letting agents against taking the law into their own hands. Instigating some kind of medieval witch hunt against their tenants is a very bad idea.”