SurreyLets are advising Landlords strongly to take out rental insurance on their new tenancies in the light of recent data from the National Landlords Association.
According to research from the National Landlords Association (NLA), 37 per cent of landlords currently have tenants in arrears.
• Over the last six months, 44 per cent of Landlords have experienced rental arrears. The NLA says this explains, in part, the increased number of repossessions and why a growing number of landlords are having problems meeting their mortgage repayments.
• When faced with arrears, the NLA's research showed that only 50 per cent of landlords attempted to recover the loss of earnings through the courts. This was because, while most landlords found the court system straightforward, many reported waiting times of over three months before their case was even heard.
SurreyLets Director, Sally Asling comments: "These statistics are worrying, Many Landlords have a tight margin between rental payments in and mortgage payments out, a month or two or arrears could present serious problems for a Landlord, and I am amazed that for approx £100pa Landlords are still not taking out a rental guarantee insurance, which is widely available"
Sally Asling further comments "SurreyLets have noticed a considerable number of Landlords trying to Let through the private ads and not re marketing through Agents. When questioned, Landlords are explaining that as rents have gone down, there is no margin to pay Agents fees, so they are trying to do it themselves. This is leaving them exposed as the quality of referencing is generally not so good, and the quality of tenants normally not so good as they are avoiding using an agent for a reason, and in my experience this is to avoid stringent reference checks that good agents undertake"
SurreyLets, offer via Endsleigh Insurance, several options for Landlords to purchase Rental Guarantee Insurance once the tenants have passed reference checks through Endsleigh. The cost can be from as little as £55pa on a single occupancy tenancy and from £99 for a property - quotes are available on request.
Sally Asling states "Here at SurreyLets we appreciate times are tough and money is tight. We appreciate the importance of letting a property quickly at a rental that can be viable, and above all we believe in putting the right tenant into a property where the tenant has undergone stringent vetting and we advise all Landlords to take out rental protection - for peace of mind. No agent Guarantees the rental, despite what service they offer, only an insurance product will do this. The statistics speak for themselves, so for a small amount of premium, it could be a saving grace."
For more information about SurreyLets please visit the website www.surreylettingsandpropertymanagement.co.uk or call 01483 282 470
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