The UK rental sector is always evolving. Landlords have come to expect that a new ruling will come along every few years and have learned to adjust accordingly. However, when the Renters’ Rights Bill becomes law later this year, the pace of change will step up significantly.
These new laws for landlords and tenants will affect existing landlords as well as investors looking for buy to rent properties in London. One of the Bill’s flagship features is the end of Section 21, which means so-called ‘no fault evictions’ will no longer be permitted. Section 21 evictions have been called ‘no fault’ because the notice to quit a rental property can be served (with appropriate notice) even if the tenant has done nothing wrong. In future, landlords will only be able to evict a ‘no fault’ tenant for a set of specific reasons, which will be enshrined in law under the new Bill.
Tenants’ rights enhanced
One of the main aims of the Bill is to improve tenants’ rights, and most landlords will applaud this ambition. Going forward, it’s likely that tenants will feel more confident about speaking up when things go wrong, and this could inevitably lead to more disputes or liability claims.
For this reason, it’s important to minimise risks. Our Ilford letting agents agree with our letting Agents in Newbury Park that insurance offers the reassurance landlords need to navigate the new lettings landscape.
Keeping one step ahead
Landlord insurance is not required by law, but most landlords will already have insurance in place to cover damage to their properties (in fact, most buy-to-let mortgage agreements insist on it).
Insuring against rent arrears or legal expenses is also not legally required, but both types of cover could be more in demand when the Renters’ Rights Bill is passed into law.
Insurance protects landlords against a range of risks: it can provide help with non-payment of rent and reduce the financial impact of unexpected repairs, as well as covering legal expenses if a case goes to court. In this blog we will help you assess your exposure to risk as a landlord and understand which types of insurance would be best for you.
Rent Protection
In the UK rent guarantee insurance, otherwise known as rent protection insurance, can cover a landlord’s losses in cases of non-payment of rent. With rent protection insurance in place, landlords continue to receive rental income, while the insurance company recovers the money from the tenants. Most insurers will continue to pay rent for a set period, usually up to 12 months.
If a tenant has a valid reason for defaulting on rent payments – for example, if they have lost a job and need time to find another – you could agree a compromise. In such cases you could create a plan for the tenant to pay you back in instalments when they are earning again, thus avoiding a claim on your insurance.
Landlord liability
Liability insurance provides a safeguard against potential compensation claims. For example, if a tenant is injured by stepping on a broken floorboard in your property, or if a passing pedestrian is injured by a falling roof tile, they could make a claim against you. If the court finds you at fault, your insurer will cover any compensation due, together with expenses and legalfees, up to the value stated in your policy.
In cases where the landlord is not at fault, a legal defence team will be provided. If the court finds that you are not to blame for causing an injury, the insurer will cover your costs
Emergency Cover
24-hour cover for emergency callouts is available as an optional extra on most landlord insurance policies. It provides peace of mind for landlords who would find it hard to meet the unexpected costs that can arise from an emergency situation.
Insurers define an emergency as an event that makes a rental property uninhabitable, either because it is unsafe, or simply unfit to live in. Emergency insurance cover enables you to recoup the cost of unexpected repairs such as water leaks or heating system breakdowns. The insurance can also extend to providing emergency accommodation for your tenants if they are forced to move out.
Facing the new rules with confidence
A comprehensive insurance policy provides a valuable financial safety net, giving landlords more confidence to face the changes expected when the Renters’ Rights Bill is passed into law. Professional lettings agents and property managers can also help landlord businesses thrive, by providing the knowledge and specialist insights needed to maintain profitability.
As specialists in residential property rentals, we are ideally placed to help landlords letting homes in the East London area. Simply get in touch with our lettings team and let us know how we can help
Call us at 020 3972 7341 or email info@oaklandestates.co.uk.
Meanwhile, if you’d like to find your dream home or properties to rent in Ilford, wanstead, Newbury Park, Barkingside and surrounding areas, check the below links
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