Why is insurance imperative to accidental landlords?
By Guest Blogger on 25 Aug 2016 in Letting
By Ryan Weston, writing on behalf of Just Landlords
Becoming a residential landlord can occur for a number of different reasons. In the case of accidental landlords, this is not something people have foreseen or have necessarily agreed upon.
The role of an accidental landlord can be thrust upon someone in varying circumstances. These include via inheritance or through moving into a separate property with a partner.
Given the current rental market, it’s absolutely imperative that accidental landlords take out sufficient landlord insurance for their property. Using a specialist landlord insurer such as Just Landlords enables property owners to take advantage of one of the widest covers available.
In many cases, people become an accidental landlord when failing to sell a property. Rather than being left with a superfluous property that is a drain on resources, many look to rent it out to provide an income. Taking out the correct landlord insurance policy then is vital.
A number of accidental landlords wrongly believe that should they fail to sell their property; they can leave it unoccupied without incurring any charges. The simple fact is that even empty properties cost money. As the owner of the dwelling, the accidental landlord is responsible for council tax payments, alongside gas, electric and other associated bills.
Additionally, unoccupied properties are more likely to be targeted by thieves. If the worst happens and valuables are stolen from a home, you will have to foot the bill for replacements and any associated damage.
As a result, the rental market provides solace for these types of homeowners. However, the private rental sector can be a legislative minefield for accidental landlords who are simply unaware of their responsibilities.
Recent regulation alterations enforced by recently departed ex-Chancellor George Osborne now permit UK landlords to check the immigration status of their tenants. Add to this features such as gas, fire and electrical safety obligations, searching for tenants and conducting referencing checks, and accidental landlords have a substantial workload. The majority of these types of landlords are in full-time employment, making their role extremely challenging.
What’s more, 71 per cent of accidental landlords were found to be unaware of changes to mortgage interest tax relief, slated for April 2017. Mortgage advisors suggest that accidental landlords make up 17 per cent of new mortgage applications.
The private rental sector can provide difficulties for even the most experienced landlords. In the case of accidental landlords, this role can be even more challenging. Just Landlords provides cover, for all landlord insurance needs.