20% of landlords failing to renew RGI policies in the last quarter
With people twice as likely to break up between Christmas and Valentine’s Day compared to any other time of year, where legal advisers and psychologists have dubbed January ‘Divorce Month’, we are worried to learn how many landlords are not renewing their rent guarantee insurance policies after the first year.
Startling statistics released by our insurance partners RentSafeUK reveal that upto 20% of landlords are failing to renew their RGI policies in the last quarter. The main reason behind this is because the landlord has carried out thorough tenant referencing beforehand, the tenant has consistently paid throughout the tenancy and so they see no need to renew their policy.
The problem with ‘The Tenant Seems OK’ Scenario is that this outlook is totally blinkered. Every person on the planet has had a problem in life at one time or another and we never know when or where it will happen. So failing to renew a policy to save a paltry £1.82 per week is extremely foolhardy to say the least!
Other reasons include:
- ‘We don’t need insurance because we rent to family or friends,’
- They can’t get covered,
- They’re willing to take a chance without it,
- They don’t know it exists.
Furthermore, RentSafeUK also claim that most tenants fall into problems in year two and three of the tenancy.
With rent arrears steadily rising in the wake of welfare reform via Universal Credit, swathes of extra legislation being heaped onto landlords e.g. selective licensing, as well as tax changes due to commence from this April one of the most stressful problems a landlord can face is rent arrears.
According to the National Landlords Association, in 2016 35% of landlords experienced rent arrears, 29% had their property damaged by tenants and 13% experienced anti-social behaviour.
We all know that anything can happen in this turbulent economy post Brexit. So landlords who heavily rely on mortgage payments to stay afloat would be wise to take out a comprehensive policy. After all, when a tenant falls into arrears their rent payments will usually come to an immediate halt for several months – especially if the landlord has to go to court to evict the tenant.
An effective RGI and legal expenses policy simply provides residential landlords with extra peace of mind, eliminates stress and makes the property investment journey a much smoother and enjoyable process.
Failing to insure Rent & Legal Expenses because a tenant has paid on time for any period is exactly the same as not insuring the property because the tenant has not burnt it down yet …!
As we get older many of us understand how indispensable and fundamental life insurance is to a sound financial plan. It gives us peace of mind knowing that money will be available to protect our loved ones and estate should anything happen to us.
You wouldn’t fail to renew your health insurance because you were fit and healthy throughout the year, would you?…
Pet lovers around the world use pet insurance as a safety net to ensure protection against unexpected costs further down the line, as veterinary bills can become extremely costly.
You wouldn’t fail to renew your pet insurance because nothing happened to it last year, would you?…
This is why pro-active landlords are protecting their assets year on year, by safeguarding their yields with practical rent guarantee insurance products from RentSafeUK.