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Buy to let property insurance 'essential despite improving rent arrears'
22 Jul 2010
Posted by Michael Brown
Landlords in the private rental sector are likely to feel encouraged by the news that the number of tenants in rent arrears is falling, but property owners should remember the importance of having buy to let insurance cover.
According to the Press Association, a fifth of buy to let landlords had tenants falling behind with their rent payments in the second quarter of 2010, but the problem does appear to be easing slightly.
According to a new survey by the National Landlords Association, around 21 per cent of landlords have at least one tenant in arrears, representing a slight decrease from 24.5 per cent in the last quarter.
David Salusbury, chairman of the group, told the news provider: "It is critical that tenants and landlords communicate and work together to tackle financial problems before they result in a loss of rent or even the tenancy.
In order to protect themselves from the financial burden of tenants who fail to keep up with payments, private landlords could invest in a buy to let insurance policy with a rent guarantee option.
