Rent Protection – Do I Really Need it?

If you think you don’t need Rent Protection you may want to think again. No matter how robust the reference checks are it will only ever be a snapshot at that time with reasonable expectations that the tenancy will be problem free. However, life happens and throws all sorts of curve balls. No one plans ill-health, breakdowns of relationships or job losses but sadly we know that with best intentions these things happen.

Do your circumstances allow you to cover the mortgage when tenants can’t cover the rent? Councils are unlikely to re-house unless the bailiffs have knocked the door, and often encourage tenants to remain in situ until this happens. With the courts being extremely busy, especially in the London area, it is taking up to 5 months (sometimes longer) to evict – can you still afford the mortgage? 
Can you afford not to have it?

Our preferred partner is FCC Paragon who have a wealth of experience within the lettings industry and provides a range of specialised products with lots of benefits to suit your needs. They have provided us with the following case study:

"We recently had a landlord approach us to help them with debt recovery for rent and legal costs that they incurred while evicting a particularly difficult tenant, during an 8 month process. Notice had been served on the tenant correctly in September to expire in November, at which point they had applied to court for possession of their property. This process usually takes as long as 6-8 weeks all being well, however at the 6 week mark a defence came in for the tenant, asking for more time because they had not arranged a new property to move to.

Although this is no defence, and at this point the tenant was 4 months in arrears, the court listed a hearing for the end of February, some 5 months after the notice was originally served. The hearing was attended, incurring further legal costs and thankfully for the landlord possession was awarded, but the misery for the Landlord did not stop there.

Despite the bailiff being applied for at the earliest opportunity the bailiffs were unable to attend due to current workloads, until the middle of May, which is unfortunately not unusual. By the time the landlord obtained possession of the property the tenant had missed 8 months rent in total and they had incurred a substantial amount of legal costs.

While we were able to help the landlord with this situation under our debt recovery, had they had an accepted claim under one of the rent protection products it would have been able to cover their legal costs, and would have included the chasing of the tenant on their behalf during the process, encouraging them to vacate if they could not cover the rent."

If you don't have Rent Protection and would like it arranged on your tenancy then contact your an Outlook branch: