There are plenty of “self-managing” landlords who may not have this important cover in place. Just ask the question
Paul Pearce is Let Alliance intermediary sales director
With the mortgage market on a positive growth curve, it would be easy to forget that we actually remain in uncertain times when it comes to the economy and employment stability. There are still some major news stories relating to redundancies and this got me thinking, how many of your buy to let landlord clients have protected their rental income in the event a tenant fails to pay the rent?
Here are just some major job cut news stories from 2015:
- Tesco make nearly 7,500 redundancies in head office, management and store jobs over the past 12 months
- Aviva cut approx. 1,500 jobs after Friends Life merger
- HSBC plans to cut 8,000 jobs in the UK in savings drive
- Rolls-Royce cutting up to 1,700
What happens if tenants become unemployed and can’t afford to pay their rent?
With average rents across the UK breaking through £700 per month, a tenant could quite easily fall into three, four, five months etc. of arrears. The landlord would also need to start proceedings to evict the tenant if they so wish and this comes with its’ own additional court costs and legal fees.
The cost and stress related to a potential messy eviction due to non-payment of rent will take its toll on any landlords.
The answer is simple. Whilst speaking to your landlord clients about their specialist Building & Contents Insurance requirements, why not ask them about Rent Guarantee cover. Let Alliance specialise in this sector and can provide award winning Nil Excess Rent Guarantee and Legal cover linked to the Buildings & Contents policy. Be aware, some Rent Guarantee (especially when being purchased directly) comes with an excess and maximum pay out periods. Let Alliance does not have these restrictions.
Many landlords will already have their rents protected especially by letting agents who have teamed up with Let Alliance, however there are plenty of “self-managing” landlords who may not have this important cover in place. Just ask the question.
With the mortgage market on a positive growth curve, it would be easy to forget that we actually remain in uncertain times when it comes to the economy and employment stability. There are still some major news stories relating to redundancies and this got me thinking, how many of your buy to let landlord clients have protected their rental income in the event a tenant fails to pay the rent?
Here are just some major job cut news stories from 2015:
- Tesco make nearly 7,500 redundancies in head office, management and store jobs over the past 12 months
- Aviva cut approx. 1,500 jobs after Friends Life merger
- HSBC plans to cut 8,000 jobs in the UK in savings drive
- Rolls-Royce cutting up to 1,700
What happens if tenants become unemployed and can’t afford to pay their rent?
With average rents across the UK breaking through £700 per month, a tenant could quite easily fall into three, four, five months etc. of arrears. The landlord would also need to start proceedings to evict the tenant if they so wish and this comes with its’ own additional court costs and legal fees.
The cost and stress related to a potential messy eviction due to non-payment of rent will take its toll on any landlords.
The answer is simple. Whilst speaking to your landlord clients about their specialist Building & Contents Insurance requirements, why not ask them about Rent Guarantee cover. Let Alliance specialise in this sector and can provide award winning Nil Excess Rent Guarantee and Legal cover linked to the Buildings & Contents policy. Be aware, some Rent Guarantee (especially when being purchased directly) comes with an excess and maximum pay out periods. Let Alliance does not have these restrictions.
Many landlords will already have their rents protected especially by letting agents who have teamed up with Let Alliance, however there are plenty of “self-managing” landlords who may not have this important cover in place. Just ask the question.
