What is the best way to protect my rental property?
I am currently looking at renting out my property after having had a problem of getting my last tenant out, they did not pay rent after the 3rd month...what can I do to stop this happening again?
Asked on Jul 1 2010,
Renting in Birmingham |
Protecting investment is one of the most important aspects of the rentals market. With long term unemployment ever increasing and the changes in budget it has never been more important to protect rental properties. The current economic climate is unstable and many Landlords are looking towards reinforcing there long term security.
As it is inevitable that some tenants will fall on hard times and this impact will effect a Landlords income directly, it is vital to pre-empt and insure that any eventuality is accounted for. Most importantly it ensuring that mortgage payments are always secure, it is true that there are many property owners struggling to keep up with such out goings and end up with bailiffs knocking at the door.
Costs of chasing Tenant arrears and evictions can soon add up. A property with a monthly rental of £500 could cost the Landlords up to and over £3000 if the tenant defaults. It therefore really does make sense to protect against such eventualities.
The usual way Landlords protect themselves is by taking deposits, taking guarantors and taking out contents and buildings insurance. Some Landlords will take out Tenant rent guarantee insurance on their tenants, but if the tenants leave the Landlord has wasted his money...
Is there another way? There certainly is...
Property rent guarantee is a product specifically designed to protect Landlords Properties against Tenants defaulting on their rental payments. Property rent guarantee products are designed cover the Property not the Tenant in the event of a Tenant defaulting. This means even after the evicted tenant has moved out the property is still covered, meaning that when you move in a new tenant your rent guarantee continues. Not only this, but a good product will pay for part-rent after the Tenant has been evicted covering the marketing period.
Martin & Co. a Letting Agent in Sutton Coldfield are celebrating the launch of their new property rent guarantee product, “Martin & Co. Promise”. Promise rent guarantee is unique to Martin & Co. covering 6 months worth of arrears (less one month excess, the deposit) and the costs of evicting Tenants (up to £75,000) and covering 75% of the rent for 2 months after Tenant has been evicted. Given free for 6 months to fully managed Landlords and offered at a competitive price to “normal” Tenant rent guarantee products, this Martin & Co. Promise is giving Landlords real protection at this uncertain economic time.
David Clinton a spokesman from Martin & Co. said “It is an exciting time for us to be launching this product and have had a great response from our current Landlords who are taking up the new product because of its value renewal cost and the massive amount of protection it offers, it is unrivalled in the current market and is unique to Martin & Co.”
With rental arrears being a threat to many Landlords, simple peace of mind is essential for many investors and first time Landlords. Property protection is not as simple as taking out references; real protection comes with rent guarantee products.
Answered on Jul 1 2010,
Some agencies will offer you rent guarentee where the rent will be paid to you in full even if the tenant defaults. There is usually an extra charge for this facility.
Answered on Jul 2 2010,
It is a good idea to be as clued up about Rentals as you can, Join a landlords group, use the web, become an accredited Landlord, the more you know and the more experienced you become the better will be your own decisions and your confidence in making your own informed decisions. I think walking this path is one of the best ways you can protect yourself.
Answered on Jul 7 2010,
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