Buy to let landlords told to insure against tenant arrears

15 July 2010

Written by Steve Olejnik

Buy to let landlords have been warned to protect themselves against tenant arrears, a problem which was faced by one in three portfolio investors last year.

Moneysupermarket.com has urged those letting out property to buy insurance, as the number of people entering the private rented sector or existing landlords buying new property appears to be increasing on a rise in tenant demand and the reintroduction of buy to let mortgages by many lenders.

"It is essential to have sufficient insurance to cover any financial losses connected with letting out a property," Julie Owens, head of home insurance at moneysupermarket.com commented.

Legal proceedings between a landlord and a tenant can be expensive, she continued, so it is important that investors protect themselves against the possibility that they may have problems with the individuals occupying their property.

Elsewhere, warnings have been given to students to ensure they avoid coming into difficulties in rented housing.

According to landlordzone.co.uk, the Deposit Protection Service and the National Union of Students have urged those looking for accommodation while they are at university to be careful they lease rooms from reputable buy to let investors.

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