Landlords Can Help Tenant Households Save Money

Thursday, April 30, 2015

Landlords Can Use Specialist Insurance Policies To Help Tenants Avoid Debt

Landlords Can Use Specialist Insurance Policies To Help Tenants Avoid Debt

 UK Households Predicted To Be £10k In Debt By 2016

Apart from the additional help for first-time buyers and the extension of the Help To Buy scheme until 2020 (for new build properties), announced in the Spring 2015 budget by the Chancellor of the Exchequer, George Osborne, there is still very little on offer to help UK households avoid increasing debts, let alone keep the UK’s residential sales and rental property markets in a sustainable healthy condition.

There is still greater demand for properties than there are available properties to purchase, this has a knock on effect to the private rental sector too, as people become increasingly desperate for decent housing, even if that means renting property short term, increasing the number of tenanted households in the UK’s PRS to over 9 Million.

At present the UK’s private rental market is experiencing similar conditions to the residential property sales market, with ever increasing demand and not enough supply. This in turn is driving up rental prices, increasing competition among tenants and provides the political parties with enough ammunition to attempt to win public support.

This may seem like good news for landlords, as such unprecedented tenant demand could see increasing rental prices, however, a new report has been published that warns that by the end of 2016, most average UK households will owe close to £10,000 (GBP) in debts such as personal loans, credit cards and bank overdrafts, without taking into account rental arrears, living costs or energy bills.It almost appears like the British public are beginning to fall in love with borrowing again, even so soon after the credit crunch and before all of the austerity measures have been lifted. Maybe the lessons learned from the last recession are still to subtle for most of the general population to fully comprehend, however there are insurance policies to help protect landlord interests.

With the UK press reporting the possible threat of early interest rate rises by the Bank of England, anything landlords can do to mitigate tenant spending and financial expenses could be of great benefit to their tenants in the long term, as well as protecting the financial interests of landlords as well as their rental property assets.

Specialist insurance policies such as tenants liability insurance can alleviate some of a tenant’s financial concerns about incurring potential repair costs should anything happen to damage the rental property’s fixtures and fittings, protecting the full value of the tenant’s deposit for as little as £60 pa.

Such specialist insurance also provides the landlord with the peace of mind as they know that any potential repair expenses for the rental property caused by the tenant would be covered up to the value of £2,500 (GBP).

Rent protection insurance has also been designed to provide landlords with continued regular rental income should anything happen to the tenant that prevents them from working, such as an accident or serious illness, or if the tenant’s employment status changes.

This allows the landlord to receive rental income whilst allowing their tenants a little breathing space to find alternative employment for an unlimited time up to the value of £50,000 (GBP).

Should the worst happen, the rent protection insurance policy also covers the cost of tenant eviction and legal expenses up to the value of £50,000 (GBP) and still continues to provide the landlord with a rental income for up to 2 months after the tenant has been evicted from the rental property.

Many landlords can offer their tenants the luxury of such specialist insurance policies, either by including the cost of insurance cover into their tenancy rental price or by agreeing separate periodic payments with their tenants to keep the policies active. Rent protection insurance can be taken out for 6 or 12 month tenancies.

Professional landlords can use specialist insurance policies to attract a better class of tenants to their rental properties safe in the knowledge that their rental property assets are protected.

Landlords can help tenants save money with specialist insurance policies

Landlords can help tenants save money with specialist insurance policies


This was written by Mike Clarke. Posted on at 11:30 am. Filed under Insurance, Landlord News. Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.