Insurance & Finance
Policy conditions
All prospective tenants should be subject to referencing, including credit checks, employer’s and previous landlord’s references, and the legally required Right to Rent checks. Before taking out a rent guarantee insurance policy, landlords must check whether these references are conditions of the insurance. At some companies landlords are expected to conduct these essential checks, as reference checks are a standard way of exposing any underlying issues with prospective tenants. Nevertheless, even the most dependable renters can sometimes fall on difficult times. This is why it’s important to consider having Rent Guarantee Insurance in place.
Current economic climate
As affordable rental properties continue to be in short supply, recent Government proposals, particularly the banning of the letting agents fees, could create additional financial constraints for landlords and their tenants. If the ban comes into force, it is expected that the fees will instead be
charged to landlords; thus, investors are expected to increase their rents to cover the added costs. Under such turbulent times in the lettings industry, landlords should be
more cautious with their income than they’ve previously had to be. This includes protecting their rental income with a rent guarantee
insurance. This is especially suitable for landlords that self-manage their portfolios, as chasing tenants for rent arrears or evicting them can be even more difficult without the help of a letting agent.
Guaranteed rent schemes
Despite the name similarities, rent guarantee insurance and guaranteed rent schemes are two very different things. You may have heard of
schemes that guarantee your rental income for a period of time through investing in one of their properties. However, this is not the same as rent guarantee insurance. Rent guarantee insurance is a policy that you take out per tenancy
agreement – it is a cover that ensures you get paid if your tenant stops or cannot afford to pay the rent. Guaranteed rent schemes, on the other hand, require investment
in certain properties in return for guaranteed monthly payments. While this may sound like a safe decision, a thorough research into the scheme is highly recommended as landlords risk becoming stuck with tenants in their properties without getting rent if the scheme goes bust. Protecting your rental income is vital for any landlord and getting
caught out if your tenants fall into rent arrears can be avoided by taking out a rent guarantee and legal expenses insurance.
Just Landlords is a specialist landlord insurance provider
44 | HMM July 2017 |
www.housingmmonline.co.uk
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52
