Landlords face rent protection 'gamble'

News Category: Management

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Landlords could be taking a gamble by choosing not to take out rent protection insurance in the current economic climate, an expert has suggested.

Michael Portman, managing director at Let Insurance Services, commented that both a credit and employer reference are usually obtained by landlords to decipher the type of tenant they have.

It might be easy for landlords to dismiss rent protection insurance if they appear to have a good quality tenant, Mr Portman noted.

But the insurance expert warned: "There is no guarantee that that tenant will have his job in three or six months' time and will be able to afford to pay the rent."

Redundancies are expected to soar this year as the UK economy continues to feel the pinch following the onset of the global credit crunch.

Letting agents might consider rent protection software in the current volatile economy.

Recent research by YouGov on behalf of the Conservative Party found that 41 per cent of private tenants were worried or very worried about being able to afford their rent over the next 12 months.

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