Landlords Are Increasingly Taking Out Renters Insurance In Response To Spikes In Tenant Arrears.

Posted on: 12 May 2022

Landlords are increasingly taking out renters insurance in response to spikes in tenant arrears.

During the pandemic landlords were unable to evict tenants and notice periods were lengthened, leading to some renters exploiting the system to not pay.

Now landlords are changing tack and prioritising reliable income over big gains.

While landlords can now technically evict problem tenants there is an extreme court backlog, resulting in some landlords waiting nearly a year to recover their properties.

The Telegraph reported one case where the landlord took pity on his tenants by allowing them to stay in the property rent-free for three months, after the breadwinner lost their job.

However the tenants said they weren’t moving after the three month period, while they were advised by local authorities to remain in the property, or they wouldn’t be given another council tax.

In the end the landlord handed the tenants £2,500 as a deposit for another property so they would leave, bringing his total losses to £7,300.

Unsurprisingly he said: “I no longer rent without insurance in place, which erodes my gains.”

Horts offers all their landlords rent insurance from as little as £30 per month. This insurance guarantees that if tenants do not pay their rent the landlord will still receive their full rent until the tenants leave. If the tenant needs evicting then the policy will also cover court costs and solicitor payments.

 

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Landlords Are Increasingly Taking Out Renters Insurance In Response To Spikes In Tenant Arrears.

During the pandemic landlords were unable to evict tenants and notice periods were lengthened, leading to some renters exploiting the system to not pay. Now landlords are changing tack and prioritising reliable income over big gains. While landlords can now technically evict problem...

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