Landlord Rent Guarantee Insurance for rental properties during the festive season
When it comes to Christmas and the festive season, you want to kick back, relax, unwind and enjoy some valuable time off with family and friends. But if you’re worrying about whether your tenants will pay their rent and what the cost might be to you if they don’t, then relaxing could be the last thing you can do.
Greater risks during the festive season
Rising inflation, the increased cost of living and higher rental prices have all hit tenants hard during 2023. On top of this, new research from the New Economics Foundation shows that four in ten households who took on new rental properties this year are paying an average of £1,200 a year above the advertised rate after bidding wars to secure their rentals.
Christmas gifts and celebrations are stretching tight budgets even further, even though many shoppers plan to buy fewer and cheaper items. For some, Christmas could be the straw that broke the camel’s back when it comes to meeting their rental payments and that could leave you facing financial hardship too.
Defaulting is an all-too-real risk, with a survey last year suggesting that more than three in four renters believed that cost-of-living increases would have a moderate to significant impact on their ability to pay rent and one in four ranking it as their top concern for 2023. The survey also showed that landlords shared similar concerns regarding the ability of their tenants to make rent payments on time and in full their top concern in 2023.
Protecting yourself with Rent Guarantee Insurance
As a landlord, Rent Guarantee Insurance is one way of ensuring your rental income will still be coming in even if the worst should happen with your tenants and they default on their rental payments. It means that you can still cover your costs, such as mortgage payments and other credit commitments.
Although you will need to check different policies for terms and conditions, Rent Guarantee Insurance will usually cover missed rental payments if a tenant can’t or refuses to pay – perhaps as the result of a tenancy dispute - or if they are refusing to leave after being served an eviction notice. It provides valuable time to reach a solution without your finances being affected by rental arrears.
Rent Guarantee Insurance also provides professional costs if you need to take legal action to try to recover the money or if you are trying to get tenants out of your property who are refusing to pay.
Landlord Rent Guarantee Insurance serves as a safety net, allowing landlords and property owners like yourselves to navigate the festive season confidently and without worrying about what might happen, and how that could impact your income.
At HomeLet, we offer Landlord Rent Guarantee Insurance that covers missed rental payments for up to six months, continued cover when vacant possession is obtained and up to £50,000 cover for professional service and claim costs. Call us on 0800 035 8258 for more information or a quote.