Landlords left out of pocket by over £5 billion every year

Money bankAs every landlord knows the key to successful property investment is looking after your bottom line, and that means making sure that you’ve got the right buy to let insurance. Recent changes to tax legislation mean landlords are having a tough time, and to make matters worse they are losing out on £5.4 billion a year in unpaid rent and property damage.

A leading legal practice has been busy crunching the numbers and estimates that property damage costs landlords an eye-watering £4.5 billion a year with rent arrears adding a further £900 million to the bill. Damage to fittings such as carpets also hit landlords in the pocket and one third of those questioned said they were concerned about the cleanliness of their property.

It won’t surprise you to read that landlords in the country’s biggest cities were hardest hit with tenants in London and Manchester causing the most property damage. Much more surprising were the findings that tenants in the relatively affluent university cities of Oxford and Cambridge were in the top five for rental arrears.

The report revealed that 40% of landlords had tenants who hadn’t paid rent causing landlords cash flow problems and legal headaches. The solution is simple and much more affordable than you might think. Rent Guarantee Insurance from Quoteline Direct provides legal and financial peace of mind for just £94.95 a year.

Rent Guarantee Insurance pays up to £2,500 a month (for a year) if a tenant fails to pay rent; meaning that you won’t miss any mortgage payments. Evicting problem tenants can be eye-wateringly expensive and cover also provides up to £50,000 towards the legal costs of eviction. Policyholders also benefit from £100,000 legal expenses cover and access to a professional legal advice helpline.

With the economy still in the doldrums and rising living costs; it looks like tough times ahead for landlords and tenants. To find out more, or to arrange cover, visit our Rent Guarantee Insurance page or Tel: 0161 874 7747 to speak with a member of our team.

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