Landlords advised to get rent protection insurance

Date:Monday 5th January 2009
Author: Susanna Kavka

Landlords should be sure to purchase rent protection insurance, an expert has stated.

Michael Portman, managing director of Let Insurance Services, said that it was a "gamble" for landlords if they did not have the cover.

Although a tenant may have a good reference, Mr Portman explained that circumstances such as job loss could affect their ability to pay.

"It's a gamble for the landlords as to whether their tenants are going to pay the rent," he commented.

In December, the National Landlords Association reported that 71 per cent of landlords anticipate an increase in rental arrears this year.

Just one per cent foresaw a decrease and 28 per cent did not think there would be any change overall.

In the same month, HomeLet reported that it had paid out £2.7 million in rent guarantee claims during the year.

The firm expects this amount to increase in the new year.