Prospective and existing landlords have been reminded of the importance they should place on having adequate insurance.
Eddie Hooker, managing director of Total Landlord Insurance, has said that while many would-be landlords believe that getting a mortgage and a standard household policy will solve their problems, they are wrong.
The expert explained that taking this route means that things like loss of rent will not be covered, while there are certain public liability requirements that aren’t involved with owner-occupied policies.
“Do your research and go to a reputable company that does bespoke buy-to-let insurance. Pick the phone up if you like the price and have a chat with the people at the end of the phone and ask all the questions that you can think of,” he urged.
“Don’t just buy the cheapest thing on the market and then worry about it when something goes wrong and you get that phone call saying ‘sorry, you’re not covered’.”
Mr Hooker also offered advice to landlords on how to manage their property, saying that if they are looking to be “hands-on” then they may be better off going it alone rather than using a letting agency.
However, those who have either bought or been left a property that is far away could be encouraged to take the letting agency route.
While agents will charge anything between five and 15 per cent, they are there to work for the landlord and can make the whole process a lot easier on the owner, he explained.
However, Mr Hooker urged property owners to remain cautious and again do their research before appointing an agent to manage their portfolio.
“There are a lot of agents out there who will take your money and do nothing – you’re handing over your rent, property and deposit to this letting agent, so make sure you do your due diligence,” he added.
