Protecting your investment.
There is no doubt that letting out property can be very rewarding for landlords with potential for both rental income and capital growth. The early past of this last decade has seen strong growth in property prices and solid rental yields for landlords. Recent years have been a bit more difficult in terms of buying property to let but the positive side is that rental demand has remained strong. The vast majority of our landlords (more than 99%) have experienced steady rental incomes and well looked after property with no serious problems. Not bad given the current financial climate.
Unfortunately there is always the chance that something will go wrong. Let's face it very few investments are 100% safe. A bad tenant (every landlord's worst nightmare) can end up in missed rent, costly legal fees and even damage to the property that may all have to be paid for by the landlord, often with little possibility of getting it back from the tenant.
Whilst it is impossible to guarantee that any tenancy will go smoothly (and don't forget that the tenant must always be accountable for their own actions), there are insurances available to protect landlords as much as possible.
Rent & Legal Insurance
This is designed to protect the landlord against tenants who fail to pay the rent. It will also pay for legal fees associated with appointing a Solicitor and the court process involved in getting back possession of the property. We strongly recommend these policies even when taking a fully managed package.
Ask you insurer if they cover for damages by the tenant. Many insurance policies do not cover the landlord in this instance, but you should be able to cover this risk at very reasonable cost as part of your overall "bricks and mortar" cover. We think that this is essential.
Don't think that simply having an agent will avoid these problems. Whilst the work a professional agent will do on your behalf will vastly reduce the risks, you should always protect your property as much as possible! Think of it as belt and braces!
Click here to see our insurance pages for links to selected companies that can provide the cover you need.