Why so many Landlords without insurance?

(28/02/2011)

I was reading through many different articles on the internet this weekend dating back to January 2010 and it was very clear that more and more were being written about Rent Guarantee.

Articles stating that Landlords feel rent arrears is the biggest risk for them in 2010 and likewise articles stating Letting agents also see this as their biggest worry. Other articles focused on the lack of rent guarantee insurance being discussed with landlords.

A particular article posted by www.residentiallandlord.co.uk even had the Property Ombudsman’s Christopher Hamer saying: “I cannot understand why every landlord is not covered by rental guarantee and legal expenses insurance, and this is particularly important for ‘accidental’ landlords who are often as much potential victims of the recession as their tenants.”

From our point of view this is why we created Rent on Time… to provide landlords complete peace of mind that their rental cash flow is 100% guaranteed and providing the letting agent with guaranteed monthly fees.

At Rent on Time we will provide a complete rent collection service which also includes free legal expenses cover and if the tenants do fall in to arrears there is no need for the landlord to make a claim, pay any excess or wait for their rent.

We simply pay the rent on the day it is due. We handle the arrears recovery process and if required, the full eviction process.

There is no catch, we basically ask that for all new tenants we will utilise our “Ultimate” credit reference checks via LetAlliance and we registered the required deposit with one of the main government backed schemes. This along with our detailed Assured Shorthold Tenancy Agreement allows us to offer the ultimate guarantee to landlords and letting agents of “your rent… on time, every time”.

I totally understand some tenants have been perfect paying tenants for many years but with the current economic climate being the way it is, there is the very real possibility that circumstances can change.

Remember, the cost of tenant arrears can increase dramatically as and when eviction proceedings take place. You are losing the rent month on month and paying for lawyers & court costs if you are not covered. We are here for that reason and would be happy to provide our guarantee.

Landlords can contact us directly and likewise if any letting agents wish to discuss how to build Rent on Time into their own proposition please do not hesitate in calling.

Paul Pearce
Rent on Time - Business Development Director