Rental safety net for landlords
Despite an agent taking every care in selecting suitable tenants, the difficult financial climate left nearly two million unemployed by the end of 2008, with many struggling to manage their finances. Rental guarantee insurance can offer landlords peace of mind.
With unemployment at the highest level since 1997 and job vacancies in shocking decline, there is a very sudden and real fear that tenants will fall behind with payments. Over the past few months we have noticed dozens more landlords using our rent and legal expenses insurances.
The advantage of the cover is that experts can be brought in to sort out any problem once the tenant has defaulted on two months’ rent. The landlord will continue to receive the rent they are due, plus they get free legal advice and, if necessary, free legal action and support will continue until the situation is resolved.
The comprehensive rental insurance package offered by haart covers rental income up to £4,000 per month, and the policy guarantees to pay out until vacant possession is obtained and offers a further six weeks rental cover so the landlord can prepare the property for re-letting.
Healthy returns forecast on buy-to-let properties
With interest rates at rock bottom, one of the best ways of making profit on a nest egg is to look to the buy-to-let property market.
Competitive mortgage rates, increased demand for cheaper properties at the lower end of the market and falling house prices have become attractive propositions for potential new landlords.
Buying property to let is an excellent investment. You can now get yields in excess of 6%, and in some cases up to 8% and 9%, which is more than you would get from investing in a savings scheme. For example, a property worth £100,000 would provide a yield of 6.6% if you charged rent at £550 per month over a 12-month period. It is certainly a great way of capitalising on the current downturn - if you have funds to invest.
Investing in a buy-to-let property can potentially provide landlords with much higher returns than traditional forms of investment. However, to get the best yields, investors will need to use an experienced agent like ours, which is fully insured so the landlord’s interests will always be protected. We also know the local rental market, which ensures investors who are looking to buy a property, will purchase one that is in demand.
haart is a member of the Association of Residential Lettings Agents (ARLA), offering peace and mind to tenants and landlords alike.
Labels: haart, letting agent, lettings, lettings agencies
