As the economic crisis appears endless and the banks and financial sector offer diminishing returns on our cash investments, people still look to property as a sure fire way of making money. But like all businesses – which being a landlord certainly is – you will be met by some expenses you may have not entirely catered for. Things like Landlords insurance should be prioritised and factored into the cost.
When we let a property out we take precautions like getting references and running checks but we can still be let down by carelessness and malice on behalf of the tenant. With any business there comes a slight sense of burden and this can be magnified greatly if you have a tenant who refuses to pay rent or treats your property with utter contempt.
As this news site often reports, we live in a society where harmony and good relations aren’t always achievable – that’s life – and we can guarantee that a broad cross section of humanity will dwell in our rented premises; some with the minimum of fuss, others with endless turmoil. As new landlord’s we can at least go some way to insuring ourselves economically against the darker side of human nature. ‘Malicious damage’ unfortunately needs to be an integral part of any landlord’s insurance policy.
Good insurance policies can also cover things like legal claims for rent disputes and loss of income if your property becomes temporarily uninhabitable. Remember that as a landlord you are responsible for the lodgings of your tenant so in the event of an unheralded disaster you may need to find alternative accommodation. Running a business and being a landlord comes with responsibilities; it’s not always all about making money.
The student rental market is huge now and you must remember that despite many of their good intentions this is their first taste of freedom and their first time away from home. This can lead to all sorts of flooding and fire risks, as personal accountability is shared along with the accommodation costs. Student digs are renowned as being communal by their very nature so carpets, settees and fixtures will generally be under a lot more stress. Being a landlord is ever a sound investment but don’t forget to insure wisely. Websites such as Endsleigh offer insurance, as well as information on lots of other services such as tenant referencing.