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Buy to let investors are being reminded that rent guarantee insurance can help prevent repossession misery and can help any landlord get through the downturn, whatever happens.

Keshav Thukaram, managing director of Smartlandlord.co.uk, says: "Mortgage arrears in the private rented sector are rising, particularly as a result of tenants failing to pay their rent. In uncertain times, landlords need to protect themselves against this.

"Unfortunately, many landlords are not yet aware that rent guarantee protection exists and letting agents are often dangerously complacent in promoting rent guarantee products as a means of fighting rental arrears, voids and the threat of repossession."

There are a world of protection products out there for landlords looking to cover their back. These can range from just covering any missed payments to covering contents, or even covering you against death, injury and unemployment yourself. In a downturn, landlords may not be able to survive for even a month if their tenant or their own income is lost.

Thukaram adds: "It is vital that landlords take a proactive approach to managing their portfolio by making the best possible use of the tools available to them to save money and increase stability."

Of course, for cover to work the key is to act before anything goes wrong. Trying to seek protection after you have missed a payment just won't work, neither will trying to get hold of cover from the hospital bed. The only way to be sure that you are covered is to get cover when you don't need it – so it works when you do.

SOURCE: smartlandlord.co.uk, 20/02/09

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