Buy to let landlords 'require more protection against rental arrears'

16 July 2010

Written by Simon Whittaker

Buy to let landlords and letting agents are not well enough protected against the risk that tenants get behind on their rent, according to one expert.

Malcolm Harrison, spokesperson for Let Insurance Services, said that the most vital policies for portfolio investors to take out are rental guarantee insurance and legal expenses cover.

His advice follows a statement from Moneysupermaket.com, which urged those considering letting their property to ensure they are sufficiently protected against the possibility that their tenants will be unable to make payments.

"It is a very important part of risk management at the moment because nobody knows what is happening with their jobs, or with cuts or anything else," Mr Harrison commented.

"In the present economic circumstances, tenants can get into trouble through no fault of their own."

According to research from moneysupermarket.com, landlord insurance can cost less than £100 per year.

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