Today, Tenant Referencing, Rent Guarantee and Landlord & Tenant Buildings and Contents Insurance provider, Let Alliance blogs for us on how to protect your rental investment as a landlord.
Whether you are a landlord with one property or an investor with a portfolio of properties, making sure you protect your investment is important. When the worst happens and a tenant defaults on their rent, Rent Guarantee and legal protection ensure your income is protected and you are not left with legal bills to regain possession of your property.
Did you know that when a tenant fails to pay the rent, it takes an average of 6 months to obtain vacant possession? Based on an average rent of £700 per month and legal costs, as a landlord, you stand to potentially lose in excess of £5,000 which can represent several years' rental yield. Add to that the cost of repairing any damage to the property and the associated void period and the impact on your income and investment grows.
It is normally a condition of a mortgage to have buildings and contents insurance so around 90% of landlords have that protection while Rent Guarantee is seriously under purchased, with only a small percentage of landlords in the UK having this protection.
The typical cost of Rent Guarantee through our office is around £240 per year. Included as part of your service agreement with Belvoir, it is tax deductible. Talk to our team to find out more about Rent Guarantee and the valuable protection it provides. Understanding the value of being covered when something goes wrong and taking the stress of that situation away from you, is likely to make you see Rent Guarantee in the way you see buildings and contents insurance – a necessity.
Having buildings and contents insurance protects your possessions; having Rent Guarantee and legal cover to protect your investment and your income should also be a 'no brainer', helping you to get the best return from your residential property.
Talk to your local Belvoir property expert today, give the office a call on 01625 410 950.