Property investors looking for a good deal on landlord insurance should be careful when choosing their tenants, according to a report from a leading online letting agency.
David Lawrenson from LettingFocus.com has many years of experience in the private rental sector and said picking the right type of client is equally as important as selecting the right type of property. He said: “Landlords may find some insurers are reluctant to cover certain types of renters, for instance leasing a property to students or people in receipt of benefits usually leads to insurance premiums being higher than for other tenants.”
The advice comes as more and more reluctant landlords appear to be entering the sector and of course many come in with little or no experience of being a landlord at all. For these people any help or advice is most welcome and Mr Lawrenson pointed out that joining a professional landlord organisation is the quickest way new entrants to the sector can pick up good, cheap help. It is certainly true that landlord organisations are seeing new members signing up every day with just one property in their portfolio, and these are often reluctant landlords who cannot afford to live in the property but cannot afford to sell it either.
Mr Lawrenson pointed out that landlords in this position must realise immediately that their old home insurance policy will not cover them if they are letting the residence to other people, and sorting out property insurance along with compliance of all health and safety regulations must be done before the tenants start their lease. Most professional landlord organisations will supply new members with a starter pack that will explain their obligations and inform them exactly where to find the help they need.