With an increasing number of tenants failing to pay their rent, buy to let landlords should consider taking out rent guarantee insurance .
As Britain gets deeper into recession, an increasing number of landlords have contacted the National Landlords Association (NLA) for advice about dealing with tenants who do not pay their rent. The NLA has received more than 30,000 calls from landlords seeking advice during the last 12 months.
Rent arrears and re-financing difficulties are placing an increasing burden on landlords and according to the Council of Mortgage lenders (CML), around 2.5 per cent of buy to let mortgages were 3 months or more in arrears in the last quarter of 2008.
Keshav Thukaram from Smartlandlord.co.uk said: " 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." Rent guarantee insurance covers landlords from rent arrears arising from factors such as redundancy, accident, divorce and illness .




