Tenant stopped paying rent? Here’s how to protect your pocket

Do you own a rental property?

From 1 May, the new Renters’ Rights Act came into force, bringing major changes to how landlords manage tenancies and recover possession of their properties. One of the biggest changes is the removal of Section 21 ‘no-fault’ evictions, meaning landlords must rely on specific grounds when seeking possession. We are here to offer support for you if you are facing a tenant you can’t evict — even when they aren’t paying rent.  Have you heard of rent guarantee insurance?

What does rent guarantee insurance do?

Rent guarantee insurance is designed to help protect landlords if a tenant stops paying their rent. Depending on the policy, it can also cover legal expenses to help with the costs of pursuing possession. This could become increasingly valuable if recovering possession takes longer. Average possession times have already reached 27 weeks, and landlords may face several months without rental income before Section 8 proceedings can begin. (Source: Mortgage Solutions)

Is it worth considering?

There isn’t a one-size-fits-all answer. For some landlords, having enough savings to cover several months of lost rental income may provide a sufficient safety net. For others, particularly those relying on rental income to meet their mortgage commitments, rent guarantee insurance could provide valuable additional protection.

Of course, the cheapest policy isn’t necessarily the most suitable. Before deciding, look carefully at the level of cover, excess, exclusions, and how claims are handled.

Don’t wait until there’s a problem

Landlords are already navigating a changing regulatory environment, and it’s understandable if you’re unsure what the latest changes mean for your property and finances. Now is the time to review your mortgage, rental income, and protection arrangements together. If you’d like to talk through your options, get in touch. We’re happy to help you understand what’s available and find a solution that works for your circumstances.

Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.