Do you own a rental property? From 1 May, the new Renters’ Rights Act came into force, bringing major changes to how landlords manage tenancies and recover possession of their properties. One of the biggest changes is the removal of Section 21 ‘no-fault’ evictions, meaning landlords must rely on specific grounds when seeking possession. We are here to offer support for you if you are facing a tenant you can’t evict, even when they aren’t paying rent. Have you heard of rent guarantee insurance?
What does rent guarantee insurance do?
Rent guarantee insurance is designed to help protect landlords if a tenant stops paying their rent. Depending on the policy, it can also cover legal expenses to help with the costs of pursuing possession. This could become increasingly valuable if recovering possession takes longer. Average possession times have already reached 27 weeks, and landlords may face several months without rental income before Section 8 proceedings can begin. (Source: Mortgage Solutions)
Is it worth considering?
There isn't a one-size-fits-all answer. For some landlords, having enough savings to cover several months of lost rental income may provide a sufficient safety net. For others, particularly those relying on rental income to meet their mortgage commitments, rent guarantee insurance could provide valuable additional protection.
Of course, the cheapest policy isn't necessarily the most suitable. Before deciding, look carefully at the level of cover, excess, exclusions, and how claims are handled.
Don't wait until there's a problem
Landlords are already navigating a changing regulatory environment, and it's understandable if you're unsure what the latest changes mean for your property and finances. Now is the time to review your mortgage, rental income, and protection arrangements together. If you'd like to talk through your options, get in touch. We're happy to help you understand what's available and find a solution that works for your circumstances.
SPEAK TO AN ADVISER
Flooding is something you should think about when taking out home insurance. And we are seeing major...
Read More >
How do you treat your insurance renewal email? It could be costing you more than you think — in som...
Read More >
The holiday season is almost here. While you're busy booking flights and planning days out, ther...
Read More >
With so much happening in the world right now, it can be hard to know what it all means for your mor...
Read More >
We might be using summer as a helpful prompt to get you organised, because really, all of these poli...
Read More >
Do you own a house that is sitting empty? Whether it's awaiting sale, between tenants, undergoin...
Read More >