Becoming a landlord can be a lucrative business, if you wish to get on the property ladder but not live in the property, renting it out is an option that allows you to pay off the mortgage with your rental payments. Whilst it can be appealing, here are some pitfalls for landlords that need to be considered when purchasing a rental property – be sure that you are fully aware before deciding whether this is the best path for you.
- Tenant non payment
- Falling values of property
- Falling levels of rent
- Voids in tenancies
- Issues with neighbours
- Increases in interest rates
These pitfalls for landlords can crop up at any time when in the buy to let business, the most important thing for a landlord is to ensure that they are covered for these eventualities. Finding a landlords insurance policy with the correct level of cover is essential to being a landlord; this will include building, contents, and landlords liability insurance as standard. Some policies will also include breaks in tenancies, or cover against when a tenant does not pay the rent, so it is important to ensure that you have thoroughly researched what you will need from your policy. If your property was affected by fire or flooding, and becomes inhabitable, not all insurance policies will cover loss of rent, so it is necessary to think not only about damage to the property, but also what will happen with regards to tenants and the rent if this is the case.
Find the best quote whilst getting everything you need from your policy cover.