Financial protection 'could prove a landlord's best friend'

News Category: Industry News

This article was brought to you by Rentman the premium property management system.

Letting agents and landlords are being encouraged to consider rent protection insurance amid the current economic crisis.

Price comparison website comparethemarket.com wants Britons to be aware of the current high rate of unemployment and risk of redundancy facing many people in 2009.

Although recent figures have shown the private rented sector to be benefiting from the economic downturn in the form of increasing tenant demand, the economic crisis is likely to have brought added pressures on some landlords' ability to finance their buy-to-let mortgage repayments.

Furthermore, a survey by the National Landlords Association in December found that 71 per cent of landlords feared that rental arrears could emerge as a growing problem this year.

Jeremy Moll, commercial director at comparethemarket.com, said: "With the current economic turmoil and the risk of redundancy increasing, it is more important than ever for consumers to evaluate their need for payment protection insurance."

The current economic climate might also place a greater emphasis on tenant credit and reference checks carried out by letting agents on behalf of landlords.

Find out more about letting agent software.