Want your rent paid on time, every time?
ElliotLee offer our landlords Rental Guarantee Protection - protecting the rental income for your investment property.
What is rental protection insurance?
If you are a landlord, you run the risk that at some point your tenants will not pay their rent. It can happen to even the most scrupulous landlord, even one who employs a letting agent and is rigorous about checks and references.
The economic climate doesn't help the potential for rent default – money is tight and employment is uncertain, so your tenant could easily fall on hard times. Of course, landlords are also struggling to make ends meet so a tenant who defaults can cause all sorts of problems. Would you be able to cover your outgoings if your tenants fell behind on their rent? And would you be able to fund any legal costs to try to recover the arrears?
Protect your rental income
Rent guarantee insurance, sometimes known as rent protection insurance, can offer a financial lifeline to many landlords. The policy covers the rent if your tenant defaults, though there are limits to most policies, so it is essential to read the small print.
You can usually put in a claim when the tenant is one month in arrears. However, you cannot normally make a claim within 90 days of setting up a policy. In other words, if you want to take out rent guarantee insurance, it's better to act sooner rather than later.
Do I need a tenant reference for rental protection insurance?
Most rent guarantee insurance policies insist the tenants have either appropriate references or a guarantor. Appropriate references might include written references from a previous managing agent or landlord, an employer and a credit check.
What if I get into a legal dispute with my tenant?
If you get involved in a legal dispute with your tenant, perhaps over eviction, rent collection, or damage to the property, it can prove costly and time consuming. Legal expenses insurance can therefore prove a welcome addition to your insurance armoury as it will help to fund your legal costs.
What other types of cover can I get as a landlord?
Landlords should consider other types of insurance to safeguard their property investment. Buildings insurance is a must as it covers the structure of the property in case of fire, storm, flood and subsidence. It is also the landlord's responsibility to insure the building. A buildings policy might include limited contents cover, though the tenants should make their own insurance arrangements for their personal possessions. Many landlords these days also take out cover in case of accidental damage, plus a policy to insure a vacant property during void periods.
Questions?
Our lettings team can answer all your questions on protecting your investment and let you know exactly how it applies to your situation. Just fill in this form to enquire or call us on 0845 450 1566.