Carolyn Uphill, Chairman of the NLA, is reminding landlords to ensure they take out the appropriate cover in the event of non-payment of rent by tenants.
Research from the National Landlords Association (NLA) shows that nearly four in 10 (38%) landlords have experienced rent arrears over the last year, with an average of £1,943 owed to them by tenants who have fallen behind on rent payments in the last 12 months.
Furthermore, the findings also show that nine in ten (89%) landlords do not take out an insurance policy to cover themselves in the event of financial loss through rent arrears, while less than a quarter (23%) take out loss of rent cover.
Most rent arrears insurance policies protect landlords against non-payment of rent while also covering the cost of legal fees which may be required to recover unpaid rent.
Most landlords will be affected by rent arrears at some point and there are many different reasons why tenants could find themselves with difficulties over meeting their rental obligations.
It’s important to be prepared as the amount of money lost through arrears can roll into tens of thousands of pounds in the worst cases. It can also be a very stressful and costly process to regain possession and claim any unpaid monies through the courts.
NLA would advise all landlords to take out specialist rental arrears cover, such as NLA Rent Protect. It gives you peace of mind that you won’t lose out if your tenant can no longer pay the rent – whatever the reason – and it also means you have access to legal advice and specialist lawyers to assist in the recovery of any lost monies.
The research, which looked at the different types of insurance cover held by landlords, also shows that:
+ 85% have buildings cover
+ Just over half (53%) have public liability cover
+ Under half (47%) have contents cover
+ 96% of landlords don’t hold specialist void period cover
+ 88% of landlords say they did not use a tenant referencing service for at least one of their properties.
For more information about NLA Rent Protect, click here.
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