As the rental market flourishes, unfortunately more and more landlords are finding that some tenants cannot pay their rents. The recession and higher unemployment is not helping and so many landlords are considering taking out a Rent Guarantee Insurance policy.
These have been around for a number of years via providers like HomeLet and Letsure. Rent Guarantee Insurance will protect the landlord in the event that their tenant/s fails to pay the rent. Of course most landlords will do their best to ensure that they let their properties to the best possible tenants, but unfortunately it's a fact of life that events happen beyond their control.
If a tenant falls behind on their rental payments it could have serious financial implications for the landlord especially if they have mortgage commitments or other financial income requirements on their property like a pension.
In the first half of 2009 HomeLet paid out over £1.5 million in Rent Guarantee Claims and legal costs. It was significantly higher than in 2008 and reiterates the difficulties faced by both landlords and letting agents.
Unemployment is rising at the fastest rate since records began in 1971 and economists are predicting that it could be up to five years after the recession ends before employment returns to stable levels. Taking this into account, it seems clear that rent arrears will only continue to rise as more and more tenants face difficulties in the job market.
In the past week the National Landlords Association has launched the NLA Rent Guarantee Insurance and in September Letsure launched Rentsure Complete Rent guarantee insurance.
Philip Suter of jml-property-insurance.co.uk said â€We had been marketing HomeLet, Endsleigh, Rentguard and Letsure rental guarantee products, however this new popular rent guarantee insurance was not very prominent on our sites so it has been given a complete classification of it‘s own.
Landlords are becoming more and more cautious and a lot of letting agents are now offering a Rent Guarantee package as part of their letting programme. A local firm of letting agents that I carry out consultancy work for has just introduced a “Management Plus†service. The service includes Guaranteed Rent, £25,000 Legal cover for eviction of tenants following non=payment of rent, court costs and 50% of rent paid for up to 2 months after possession whilst the property is being re-marketed.â€
Philip went on to say â€we have several other landlord insurance providers who advertise on our sites, who do not offer Rent Guarantee yet, however the trend must be changing. One of these companies has just launched a specialist website to promote their guarantee product within the last 48 hours and this product will shortly be added to those we act as introduction agents for.â€
Many UK landlords are very worried about tenants not being to pay their rent, despite the fact that they have properly referenced by credit search companies. They are now protecting their investment with Rental Guarantee Insurance so they should go to http://www.jml-property-insurance.co.uk/Landlords_Rent_Guarantee_insurance.htm
Company Information
jml-property-Insurance.co.uk is part of jml Property Services, the trading name of Jeffrey Milner Ltd. The company is an UK based company that was established in 1979. jml insurance acts as an introducer for insurance companies selling property insurance including landlord and tenant rental products, pet insurance, wedding insurance, motor insurance, car hire excess insurance, travel insurance and non standard insurance products. They also operate jmlvillas.com an online marketing service for owners of holiday home property to advertise and are part of the jml Group that includes jml Training and Consultancy