» Read the full story

Some tenants are still facing financial pressures in this recession, which are leading to increased rental arrears – the only way to be sure that you are not affected is by taking out the right insurance.

Research conducted by the National Landlords Association has revealed that nearly three quarters of landlords have experienced rental arrears. Worryingly, 43% of these occurred in the last 12 months.

Getting the right buy-to-let landlord insurance offers a way for landlords to minimise the risk from loss of rent. Should problems arise during the tenancy, you can also get cover that provides legal expenses and even medical bills for anyone hurt while working on your property.

David Salusbury, chairman of the NLA, says: “Landlords may not realise they can protect themselves against rental arrears, but our research clearly shows there is a need to safeguard your rental income. Unfortunately we aren’t out the woods with the economy just yet, and thanks to redundancy and unemployment some tenants are struggling to pay their rent.”

The NLA says that landlords should not just get the right insurance, but they should not forget the importance of taking full references and making checks at the outset of a tenancy. Keep in touch with your tenants too – if they feel they can come to you if they are facing difficulties, you may be able to come to an arrangement before rental arrears become more serious.

Ian Potter, operations manager of the Association of Residential Letting Agents says: "Rental arrears is more common during a recession as redundancies occur and tenants' financial stability changes. With the private rented sector continuing to grow, it is important that those tenants struggling to meet payments are supported."

SOURCE: NLA, ARLA, 20/10/09

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog