Renters’ Rights Act: risk minimisation

Like it or not, the Renters Rights Act is just weeks away now, so for those of us who have not already completely sold up, we need to take this seriously.

The Renters’ Rights Act has left landlords feeling betrayed, exposed, and, in many cases, trapped, but there is a way for landlords to reduce risk.

There are big differences between understanding the Renters’ Rights Act, feeling exposed by it, expressing grievances, and regaining peace of mind.

When risk becomes insurable at a reasonable premium, that changes everything.

Over the past few months, landlords have read the summaries, followed our updates, and debated what the Renters Rights Act might mean for them. However, as implementation gets closer, the conversation is becoming less about legislation and more about personal exposure, because once you strip everything back, the issue is not legal, it’s financial.

Lenders are also feeling this pressure

Howard Reuben, founder of Assured Protect and a long-standing Property118 sponsor, has built a specialist proposition in this area.

Several buy-to-let lenders have recently invited his team to present to their national teams, reflecting the growing importance of risk-reduction in the current environment.

Assured Protect works with a panel of over 200 insurance markets, including Lloyd’s syndicates and direct providers, and has recently expanded its advisory team following a partnership with an insurance consolidator.

The new Assured Protect Rent Guarantee Insurance policy provides up to £100,000 legal expenses protection per claim, providing the money to cover legal costs and expenses to help pursue or defend your legal rights arising from a claim involving all of the following:

• Rent Recovery: Covers the costs and expenses of pursuing a tenant over unpaid rent.
• Tenant Eviction: Covers the costs and expenses of obtaining vacant possession from the tenant.
• Tenant Property Damage: Covers the costs and expenses of pursuing the tenant for damage to the property.
• Legal Defence: Covers the costs and expenses of defending you in relation to civil or criminal court proceedings arising from the letting of the property.
• Property and Squatter Protection: Covers the costs and expenses of pursuing a third party in relation to a nuisance, a trespass, unauthorised occupation or damage caused to the property.
• Court Attendance: Cover for loss of salary for your time off work if you are required to attend a court or tribunal.
• Tax Protection: Covers the costs and expenses of representing you in a Tax Enquiry or Cross Tax Enquiry, PAYE disputes, VAT disputes.
• Rent Guarantee: Covers the cost of unpaid rent before vacant possession is obtained.

A hugely comprehensive policy providing landlords with massive peace of mind.

Individual properties and tenancies can be covered and property portfolios can also be wrapped up in to one policy, with one Direct Debit, too.

If the rent stopped tomorrow, how long could you carry your portfolio?

You have probably already run the numbers.

In the real world, we are all acutely aware that notices take time, courts are slow, and possession is no longer something you can rely on happening quickly. Nevertheless, there is a way for landlords to reduce cashflow risks resulting from the Renters Rights Act, and Howard’s team at Assured Protect would welcome the opportunity to discuss it further with you.