Some advice on the benefits of landlord insurance
Being a landlord has its financial benefits; however it is hard work and can be risky. Much depends on the type of tenants the landlord allows to use his property.
Students in particular are seen as risky tenants to host as they have little income and mainly have to rely on a part time job or their parents to fund the rent. There’s also the risk of the tenant moving home before they have completed the university year deciding that they would rather move back in with their parents. Therefore the hassle of threatening court letters and ringing up the guarantors ends up not being worth the extra financial gains.
One main issue with student letting is the damage that these types of tenants can cause. Because they are away from home for the first time and they feel as though the home is not actually their own they do not always respect it to the level they should.
Many will see the house as the perfect opportunity to show off their rebellious side built up from years of living in the confinement of parent’ rules.
The beneficial aspect of student letting is that a seven bedroom home in a cheap rental area can equate to seven times the average rental value, therefore giving the landlord a hefty income to pay off their mortgage early, therefore quickly earning profit from the property. The good news is that landlord insurance will cover any potential damages and also loss of rental in case a person can no longer afford to pay the rent. Also nowadays it’s common for all persons to pay around one month and a half rental just to secure the property, this is usually held against any damages or late/no payments for rent.
Also it’s imperative to have landlord insurance in case of failure of the structural integrity of the building. Water pipes, for example, may burst and cause water damage to the property, electrical faults can be costly to repair and roofing faults can cause rainwater to enter the building which can also be costly to repair.
It all starts to look a bit rosier for landlords if they have landlord insurance. Having insurance means you are covered against any malicious damage that may be caused by your tenants whilst at the same time protecting your prized asset from befalling any damage that may come about in the process of home ownership.