News Landlords: Protecting your rental investment
Published by Natalie on 8th June, 2017
Landlords: Protecting your rental investment
Whether you are a landlord with one property or an investor with a portfolio of properties, making sure you protect your investment is important. When the worst happens and a tenant defaults on their rent, Rent Guarantee and legal protection included in our Rent on Time service ensures your income is protected and you are not left with legal bills to regain possession of your property.
Did you know that when a tenant fails to pay the rent, it takes an average of 5 months to obtain vacant possession? Based on an average rent of £600 per month and legal costs, as a landlord you stand to lose £4,500 which can represent several years' rental yield. Add to that the cost of repairing any damage to the property and the associated void period, the impact on your income and investment grows.
It is a condition of a mortgage to have buildings and contents insurance so around 90% of landlords have that protection while Rent Guarantee is seriously under-purchased. Less than 20% of landlords in the UK have this protection.
Talk to us to find out more about Rent Guarantee as part of our Rent on Time service and the valuable protection it provides. Understanding the value of being covered when something goes wrong and taking the stress of that situation away from you, is likely to make you see Rent Guarantee in the way you see buildings and contents insurance - a necessity.
Having buildings and contents insurance protects your possessions; having Rent Guarantee and legal cover to protect your investment and your income should also be a 'no brainer', helping you to get the best return from your residential property.