What do you do if a tenant stops paying?
Even honest and reliable tenants can fall into financial difficulty … loss of job, breakdown in relationships and other changes in circumstances can cause a tenant to default on their rent.
£10,630* … this is how much it can cost a landlord
• Ministry of Justice figures state that it takes on average 298 days (42.6 weeks) to gain possession of a property when evicting a tenant
• According to the July 2020 Rentshield Rental Index, the average UK rent is £965 a month
• The standard legal fees to evict a tenant including court fees is around £1,156
• The lost rent and legal expenses associated with an eviction can cost as much as £10,630!*
• According to the July 2020 Rentshield Rental Index, the average UK rent is £965 a month
• The standard legal fees to evict a tenant including court fees is around £1,156
• The lost rent and legal expenses associated with an eviction can cost as much as £10,630!*
What does this mean?
This unexpected loss of income can cause landlords to fall behind on mortgage payments and some may even choose to leave the rental market after a bad experience like this.
*Average monthly rent as published in the July 2020 Rentshield Direct Rental Index. Ministry of Justice possession statistics state that it takes an average of 298 days (42.6 weeks) between issuing a claim and gaining a possession of a property (correct as of October 2019). Legal and court fees of £1,156 is based on Rentshield Direct’s three stage eviction charges (£567+VAT) in addition to court fees of £355 and £121 for proceedings and warrant of eviction.
**Rentshield’s Rent Guarantee will cover monthly rental costs (upto a maximum of 6 months rental payments) until vacant possession is obtained, or until the limit of indemnity on the policy is reached, whichever is the sooner.
***Average eviction time based on statistics held by Barbon Insurance Group and correct as of January 2020.
What’s included?
• Rents of up to £2,500 paid until vacant possession is obtained**
• Rentshield Direct’s expert legal team will support the eviction process –
Rentshield’s average eviction time is just 120 days so the landlord will get their
property back quicker
• 50% of rent paid after eviction for up to 2 months while you re-advertise the property
• Legal cover for property damage over £1,000
• £50,000 total cover for lost rent and legal fees
**Rent is paid until vacant possession is obtained up to 6 months depending on the policy taken out.
It’s good to know…
- We offer 12-month policies with nil excess options
- We have our own, in-house claim handlers who will get to know your case
- We work hand-in-hand with our underwriters… so you’ll be in safe hands
- You can request Rent Protection through Connect, our simple referencing platform
Want to know more?
To learn more about how our comprehensive Rent Protection Insurance can work with your business and to get started, get in touch with us today!
Enquire today
