Tag Archives: landlord rent guarantee

Can you afford NOT to have landlord rent guarantee insurance?

NightmareTenantsSlumLandlords

Image Copyright Channel 5 – link no longer working

As buy-to-let has increased massively across the UK, partly due to the lamentable return on other kinds of investments, so too have the horror stories of nightmare tenants. First they suddenly stop paying the rent and when the hapless landlord finally evicts them, he or she is faced with possibly several thousands of pounds repair bills.

As a landlord, even if you’ve been lucky enough to avoid these vile people you probably know of others who have fallen prey to nightmare tenants. Just take a look at ‘Nightmare Tenants, Slum Landlords’ on Channel 5 and you’ll see dreadful cases of how a small minority of tenants can make life an absolute hell for small-time landlords.

Landlord Rent Guarantee & Legal Expenses Insurance

Admittedly there are also rogue landlords out there who equally make life hell for their tenants but that’s not what this article is about. This article is in fact about the importance of taking out Landlord Rent Guarantee and Legal Expenses Insurance – rogue landlords don’t need this insurance as they use other rather more direct methods!

In fact, the problem IS rogue landlords because I believe that it’s because of them that the law is absolutely on the side of tenants when it comes to eviction.

Firstly you need to have approved grounds for evicting the tenants, usually non-payment of rent or anti-social behaviour in your property. Then, if they won’t go voluntarily, you need to serve a Section 21 Notice.

And a Section 21 will only be regarded as valid by a court so long as the landlord has properly protected the security deposit and complied with various other procedures that now cover the commencement of any tenancy.

A Section 21 cannot be served during the first four months of tenancy. Once a Section 21 is served the tenants must be given two months notice to quit. If they fail to leave then you need to seek a Possession Order – this can easily add another month and then if the tenants ignore the Order you’ll have to spend more money and time getting bailiffs to physically evict the tenants. And in this case you should always upgrade the Order to the High Court so as to make use of proper bailiffs.

It could easily cost you around £6000.00

So, all in all it could take at least four months to evict bad tenants and often longer! In all that time you will be losing rent and ranking up legal costs. On an average property this could easily amount to well over £6000.00!  And then you will probably have extra refurbishment and cleaning costs to deal with the mess that’s left.

We are agents for Landlord Rent Guarantee & Legal Expenses Insurance, but even if we weren’t, I’d still say that at only £99.95 per property for 12 months’ cover it’s incredible value.

To maintain this low cost, tenant referencing is a condition of this insurance and it’s important to follow the correct procedures relating to taking and protecting the security deposit. If you need more information about this insurance and/or referencing just email us at info@landlordsandletting.co.uk

However, even if the tenants seem nice, strict referencing should ALWAYS be carried out whether you are taking out rent guarantee insurance or not.

What does it cover?

The premium covers your rent up to a maximum of £3000.00 pcm, with a maximum payout of £25000.00 per claim and covers up to five named tenants in the same property. After the first month your rent will be paid per month and our legal team will get to work to evict the tenants as soon as possible and, if appropriate and possible, recover costs to cover damage not covered by the security deposit. You also have the option to have your rent paid without the one month ‘grace’ period – this costs a little more at £129.95 for 12 months.

So, can you really afford NOT to have this insurance?

 

Landlords and Letting  – Affordable landlord insurances

 

 

Why landlord rent guarantee and legal expenses insurance matters

It’s great once you’ve found what appear to be good tenants and you can finally breath a sigh of relief that at last you’ll be getting rent in to cover your own expenses. And if you let the property yourself you will be saving a lot of money by not employing a letting agent.

The problem for landlords letting property themselves, though, is that they can sometimes be a bit too trusting. That young couple who turned up at the flat seemed so nice and they both appeared to be friendly and have good jobs…don’t they? The thing is that rogue tenants are more likely to go for property that’s being let direct by the landlord rather than going via letting agencies. This is because agents are VERY strict and always rigidly reference tenants and they tend not to be as easy going as the landlords themselves.

And of course, that nice couple may actually be nice but they might lose their jobs…or split up.

So, if you’re letting your valuable property yourself it really is advisable to get some form of rent protection insurance. Not only will this insurance kick in and pay your rent if the tenants default but it will also arrange and cover the cost of expert legal help to evict the tenants. The other aspect is that practically all Landlord Rent Guarantee policies require that the tenants are scrupulously referenced and their identity firmly verified. This aspect alone tends to scare of dodgy tenants.

It usually costs only around £100 a year for up to several tenants and given that you’re likely to be saving many £100s by not using a letting agent, it really does make good sense to take it out!

LandlordsandLetting offers Landlord Rent Guarantee and Legal Expenses Insurance from as little as £53.00 for six months’ cover or £99.00 for 12 months.