The importance of rent guarantee in the current climate
Rent prices are growing at the fastest pace in five years, outpacing many tenants’ salaries – keeping up with payments is especially difficult for those living in London, those receiving housing support, part-time workers and people with children. The English Housing Survey showed that in 2021-22 private renters spent 33% of household income on rent on average, compared to 22% on mortgage payments for owner-occupiers.
Protect income against defaults
Marc Corcoran, Product and Placement Director for Gallagher Insurance, who are Propertymark industry supplier outlines the last few years have been financially difficult for many landlords and tenants and Gallagher’s prides itself on its ability to act quickly but sustainably in response to market changes. Their aim is to provide products that offer suitable protection for clients and customers, offering financial support if the worst was to happen.
Non-payment could go on for months with thousands of pounds in rent arrears built up, and any subsequent repossession and eviction proceedings can be drawn out affairs. Looking at options for protecting rental income may help to avoid financial issues during these economically turbulent times.
What Legal Expenses and Rent Guarantee Insurance does
Landlords can benefit in several ways:
Protection against unpaid rent - financial backup if a tenant is unable to pay their rent.
Covering the cost of eviction proceedings – not leaving the landlord out of pocket due to the process of evicting a tenant.
Covering the cost of legal advice and representation - supporting landlords to follow the correct procedures when evicting a tenant.
Specialist insurance product
Not all legal expenses and rent guarantee policies are the same, as can be the case with any insurance policy, landlords should therefore carefully review the terms and conditions to ensure the cover is suitable.
Posted on Tuesday, 26 September, 2023