– a term hardly laced with optimism, but one nonetheless used to describe those who’ve been landed with a pile of bricks and mortar from a generous relative, have moved in with their partner, away for work, or wanted to upsize, and wouldn’t or couldn’t sell their own home.
7% of British adults have a rental property to supplement their income, and 55% of these are “accidental”. If this is you, and you suddenly find yourself with a spare property that you can’t or won’t shift, you have three options:
- You could roll up your sleeves and throw yourself whole-heartedly into the role of involved, proactive landlord.
- You could make a half-hearted attempt at managing this yourself before recoiling at the enormity of a tenancy agreement, or
- You could leave it to the professionals.
We’re going to look at option three, in part because insurance brokers always go for the most sensible option. We believe that leaving it to those whose business revolves around letting and legislation means that they’ll give it the attention it needs so it doesn’t take over when things go wrong.
What do we mean?
Well as nice as it is to imagine that your property will tick over, be well-looked after by happy tenants, and never fail to bring up the rental-income each month, unfortunately this is not always the case.
A professional letting agent will screen any potential tenants in a process intended to bring up any rental misdemeanours in the past – not paying rent, growing cannabis, rearing elephants in the back garden illegally – that sort of thing.
When you’ve chosen your ideal tenant, there’s the option for letting agents to fully manage your property for a fee, which means that they will arrange paperwork around payments, tenancy deposit schemes and property inventories, and make sure you have an up-to-date gas safety certificate. It also means that the letting agent will be the tenants first port of call if there is a home emergency.
Your insurance is left to you, but again, this is a responsibility you can pass up to the professionals. While your letting agent is keeping your property and tenants harmoniously ticking over as best as circumstances allow, Property Owner Insurance is the back up for when things go horribly out of tune.
This is the time when a good insurance policy really counts, and whilst most adverts for insurance concentrate on how cheap the premium will be it is vitally important to make sure you have the correct covers for your circumstances
Most insurance brokers will have been helping out landlords for a while, and so know a thing or two about the kind of covers that are going to save them a big headache in the future. Like the letting agents who only want to get landlords the best tenants, they only want to provide quality, relevant insurance. It makes things easier for them when processing your claim, and helps ensure that you are less likely to want to prematurely throw in the landlord towel after a difficult situation.
If you’re a Part-Time Landlord who wants to confidently embrace your asset for what it can provide you, we would suggest you trust in the support of the professionals whose job it is to help you do so.