In the current climate, the focus is often on the protection of tenant’s rights, and it can be easy to forget that landlords get a raw deal when a tenant defaults on rental payments. Expenses are still incurred and there are legal costs to regain possession. If the property is not owned outright, mortgages still need paying – all outgoings with no income to balance the equation. Many landlords find themselves in this situation and are surprised to learn they could have taken out an insurance policy to protect their income and cover their legal costs.
LegalforLandlords has offered such cover for a few years and has just launched an enhanced version of their Rent Protection Insurance. The new Premium policies include the assurance that 100% of rental income will be paid and legal expenses covered, but also offer extra benefits. Gemma Ellis-Fox, the company’s Head of General Insurances, said, “This new policy will help landlords with the expense of property damage, nuisance or trespass claims and even the eviction of squatters. We’ll help landlords with advice and financial support during the repossession process, and even pay 50% of the rent for three months post eviction.”
The extra features recognise that when problems occur, they often multiply. A defaulting tenant can put a considerable dent in a landlord’s cash flow for several months. Sim Sekhon, LegalforLandlords’ Managing Director, said, “As well as landlords who don’t know about rent protection cover, there are those who think it isn’t affordable. We suggest they tot up the potential costs of a defaulting tenant before making that judgement. It’s more likely that they can’t afford to be without protection.”
Landlords who have already let properties without cover may well think that they’re too late to protect themselves. But Sim Sekhon added the following: “We can protect landlords whose tenants have passed one of our Fast Track or Complete references for up to 90 days after the reference, even if the tenancy is underway.”
The economy isn’t shining. Incomes are being squeezed and many are finding it hard to meet their commitments. Even the best-intentioned tenants can find that rental payments, once manageable, can become a struggle. But, now, with these policies, landlords don’t have to live in fear of damage to their own financial health.
For more information call LegalforLandlords on 0333 577 9050 or visit www.legalforlandlords.co.uk