Landlords urged to protect themselves ? buy to let mortgages

25 February 2009

Landlords have been urged to take out rent guarantee insurance to prevent them falling into arrears on their buy to let mortgages.

Keshav Thukaram, managing director of property services website Smartlandlord.co.uk, said that agents must to do more to raise awareness of the insurance product, which can help to offset the risk of repossession.

He noted that the "uncertain times" seen recently mean that many tenants have been unable to pay their rent, which in turn has an effect on their landlords' finances.

"A sustained campaign is needed to protect both tenant and landlord against the misery of repossessions," he remarked, adding that buy to let investors must be "proactive" in managing their affairs through the downturn.

Meanwhile, the National Landlords Association has revealed that over a 12-month period, 30,000 calls were made to its helpline from people seeking advice on topics such as arrears and notice periods.