The benefits of Rent and Legal Protection
Letting agents do their utmost to find the highest quality tenant they can for a respective landlord.
However, even the most reliable tenants can run into financial difficulty and become unable to pay the rent. The COVID-19 pandemic highlighted this issue. A small change in circumstances, often outside of the tenant’s control, can be enough to affect tenants’ ability to pay their rent. When this happens, Rent & Legal Protection Insurance becomes incredibly important for a landlord to protect their income and asset. With this safety net in place, you can rest assured that your income will not be affected if your tenant doesn't pay the rent.
Rent and legal protection for landlords can provide significant advantages in protecting against potential arrears, rising court costs and more importantly, peace of mind. Managing rental properties and navigating potential disputes can be a minefield, so having an insurance policy in place has many benefits.
With the impending introduction of the Renters’ Rights Bill and the uncertainty surrounding the changes in protocol for landlords and agents, we are predicting an increase in landlord’s uptake of Rent and Legal Policies. This is so that in the event they may need to make a claim, the protection will be there to help support them financially and legally.
Rent and Legal Protection - What it covers
Evictions assistance
- Streamlined process: Legal protection often includes support for eviction proceedings, ensuring they are conducted legally and efficiently.
- Legal representation: Access to lawyers who specialise in landlord-tenant law can help landlords navigate complex eviction processes.
- Claims process: Submitting a claim for Rent and Legal Protection can be time-consuming and burdensome, especially if the landlord is required to gather and submit all the necessary documentation. To make the process more efficient, it's advisable to select a provider who can streamline the claim process by using the information they already have on file about the property. This can save landlords from the hassle of gathering paperwork and ensure a smoother experience. Before signing up with a provider, landlords should confirm that the provider handles most of the claim submission process, minimising the amount of administrative work required on the landlord's part.
Financial protection
- Coverage for legal fees: Legal protection plans can cover the costs of hiring a lawyer for disputes or evictions, reducing financial strain. Serving of notices and court documents costs both time and money, and failure to serve these correctly can delay court action and evictions.
- Protection against rent arrears: Some policies help in recovering unpaid rent through legal means. Some will cover the full amount, and some will cover a percentage.
- Length of cover: Due to disruptions and delays in the court process, the time it takes to evict a tenant has doubled in most cases. As a result, it is crucial to ensure that coverage extends through the entire eviction process, rather than being limited to the notice period alone.
Risk mitigation
- Reduced liability: This is crucial for landlords to protect themselves from legal disputes and lawsuits. By having proper legal protection in place, landlords can ensure they comply with applicable laws and regulations, which minimises the chances of facing litigation.
- Insurance against claims: Some plans may offer coverage against tenant claims, which can help protect landlords from unforeseen legal issues.
Mediation services
- Conflict resolution: Many legal protection plans include mediation services to resolve disputes before they escalate to legal action, saving time and resources.
Documentation support
- Record keeping: Assistance with maintaining essential records and documentation, which can be critical in legal situations.
- Guidance on notices: Rent and Legal Protection provides help in drafting and delivering legal notices, such as eviction or lease termination notices so ensuring they meet legal requirements.
Overall, rent and legal protection can significantly enhance a landlord's ability to manage their properties effectively while minimising legal risks and financial exposure. Rent and legal protection ensures that you as a landlord follow all the correct legal protocols, provides support on drafting legal notices to mitigate against disputes and ensure compliance to make sure you stay within the bounds of the law, which reduces the likelihood of legal battles, financial penalties and reputational harm.
As a landlord, there are many issues to juggle. Having rent and legal protection in place gives you peace of mind knowing that you are protected from costly legal fees. Our partnership with Goodlord provides protection from £30.00 + VAT per month and includes legal cover to pursue tenants for damage to the property of over £1,000.
Please get in touch to find out how we can help you with Rent and Legal Protection
