General Legal Protection Limited has launched the UK’s most straightforward ‘Landlord Rent Guarantee’ insurance product that is specifically designed for the letting agent market.
Whilst the product insures both legal fees for a wide range of scenarios and rental payments if a tenant falls into arrears, it also offers its own upfront free express tenant referencing system to reduce the chances of renting to a risky tenant. It pays up to £25,000 for rent arrears and up to £25,000 for legal expenses.
André Scruton, Managing Director of York based General Legal Protection, says: “The growth of the private rented sector combined with an uncertain economic climate means more tenants than ever before are defaulting on payments. Recent figures from the National Landlords Association reveal that 49% of landlords have experienced rental arrears in the last 12 months.
“Part of the reason for this is that even the most stringent checks and references won’t help if a tenant falls on hard times. Plus there are an endless number of reasons why a landlord might need legal assistance which can range from having to evict tenants through to pursuing costs for damage or even defence costs if a tenant takes action against the landlord.
“As a result we spotted a gap in the market for a straightforward insurance product that landlords can rely on. As soon as they experience problems they can speak to an expert who will advise them about how to proceed and take immediate action on their behalf.”
André adds: “The product is also specifically designed to be easy for letting agents to purchase on behalf of landlords. Landlords typically pay between £45 and £75 per year for the product and letting agents receive a commission for each product they sell. There’s also the added benefit that problem tenants are dealt with by a team of professionals rather than the letting agent having to handle the difficult situation between the tenant and aggrieved landlord. Plus the cost of the policy is tax deductable against a landlords’ income which makes it even better value for money.”