Not taking out insurance is a "gamble" - buy to let mortgages

05 January 2009

Landlords take a "gamble" if they do not take out rent protection insurance, it has been claimed.

Michael Portman, the managing director of Let Insurance Services, said that even if an owner has a good tenant, there is no guarantee that the occupant will keep their job in the current economic climate and be able to make rent payments.

It helps to obtain a landlord's employer reference and a credit check at the beginning of the tenancy, he noted, but added that taking out insurance can offer extra protection.

"There is no guarantee that that tenant will have his job in three or six months' time and will be able to afford to pay the rent," he remarked.

In other buy to let mortgages news, the National Landlords Association recently reported that 71 per cent of landlords expect rent arrears to rise in 2009.

One per cent thought arrears would fall and 28 per cent believed there would be no overall change.