A survey has revealed that many private landlords aren’t doing enough to protect their property investment. Research by insurance giant AXA shows that landlords are leaving themselves vulnerable to renting to unsuitable tenants and not buying the correct insurance policy.
The study has shown that around one-quarter of residential landlords don’t have any insurance at all for their rental properties, or have inadequate insurance cover. This means that both the landlord and tenant are being put at risk, in the event of any accidents or damage.
The survey described it as “startling” that a massive 43% of those who responded weren’t aware that specialist landlord cover existed.
In fact, landlord insurance should be in place to cover:
- Building and contents
- Loss of rent
- Public liability
- Legal expenses
- Emergency assistance
The research also found that:
- 26% of private tenants were late paying their rent
- 15% had caused excessive noise nuisance, leading to neighbours’ complaints
- 10% had received a visit from the police about potentially illegal activities
- 8% of tenants had committed a crime in the landlord’s property and
- 8% had sub-let their rented home to someone else without permission
In addition, 38% of landlords didn’t carry out any kind of checks on their prospective tenants, with just 29% of landlords asking for references from previous landlords and 27% requiring an employer reference.
Private landlords must be aware that by scrimping on the tenant selection process, they could find themselves with problems further down the line.
In fact, the world of property lettings if you’re an inexperienced private landlord can be a minefield. Many landlords benefit from the expertise of an online letting agent (such as ourselves) to ensure they’re up to speed with legislation and to remove the risk of ‘getting it wrong’.
Using an online agency means the same services provided by a high street letting agency are available, but at a far lower cost, while still maintaining high service level standards (see our latest reviews)
For many people who have become “accidental” landlords, renting out a single property due to a change in financial and other circumstances, understanding the legislation can be particularly important. If they fail to learn the legalities and risks of renting out their home, there could be problems ahead.
If you would like to discuss how we can support you with our letting services, please contact a member of the landlord team on 0333 577 8888 or you can request a complimentary best price guide for your property here.