Private
Sector Rental prices and rental yields increased
in the three months up to October 2011, according
to new research from the Royal Institution of Chartered
Surveyors (RICS). The survey found that the number
of UK property agents who reported higher rents
had risen by 19% in the 3 month period. 15% more
property agents also said that PRS rental yields
rose between August 2011 and October 2011, the seventh
quarterly increase in a row. More Private Rental
Sector landlords are likely to increase their rents
next year, while mortgage lending in the buy-to-let
sector is forecast to remain subdued.
It
is Boom time for UK landlords!
The
figures reflect the growing demand in the UK rental
sector, as many Britons find it hard to secure mortgage
finance in the current economic situation. The ailing
house sale market also causes demand for rental
properties to rise. PRS Rent has been on the rise
throughout 2011, with average property rental payments
around £720 in October, a record high. RICS
also found that the number of family homes available
for rent has increased because many owners cannot
find a buyer, while fewer homes are now being sold
after the initial rental agreement (AST) ends.
Private
Rental Sector landlords are taking significant steps
to ensure that their future rental income is protected,
including searching for good landlord insurance
to protect their rental property assets and rent
guarantee products to ensure regular cashflow. Landlords
should ensure prospective tenants are referenced
prior to the start of a tenancy and the landlord
should take out comprehensive buy to let or landlord
insurance to protect their property asset. Additionally,
Rent Guarantee products are continually being improved
to afford PRS landlords even greater financial security.
Such
steps may seem a little extreme to some, but landlords
who are able to prove their financial worthiness
to lenders will generally have more success in obtaining
a buy to let mortgage for a property, and building
a stable property rental business with suitable
measures in place to protect rental income reassures
lenders that their money is in safe hands.
If
you are a Landlord who lets a property in the UK,
then you run the risk of rent default by your tenant.
Here at Legal 4 Landlords we realise this and we
have been working with our partners to bring UK
landlords one of the very best Rent Guarantee products
available on the market. Even the best checks and
references cannot predict a tenant falling on hard
times and not being able to pay their rent.
Could
you as a landlord cover your expenditure if this
happened?
In
the current economic climate, many landlords
are finding their default rates soar as tenants
struggle with rising unemployment and increased
bills. Recovering arrears can be difficult
and costly for landlords, without any guarantee
of success. At Legal 4 Landlords, our Rent
Guarantee Insurance will cover you against
your tenant defaulting or failing to pay the
rent. |
|
Key
Points
A full tenant reference must of passed before a
rent and legal expense guarantee can be purchased.
Rent Arrears covered up to £50,000 per incident
Legal Expenses covered up to £50,000 per incident
No
Excess to Pay. Unlimited Period of Rent Arrears
paid. All tenant types accepted
6mth
Rent Guarantee Fixed Fee £95 or 12mth Rent
Guarantee Fixed Fee £135.
Rent
Guarantee protects landlords whose tenants default
on payments of rent. Rent Guarantee also provides
cover for costs and proceedings to evict the tenant
from the rented property where applicable.
