Impact of the Renters’ Rights Bill
The new legislation could make it harder for landlords to evict tenants. With a ban on Section 21, landlords will need to prove fault under one of the Section 8 grounds. Although the reform aims to offer greater tenant security, it introduces greater uncertainty for landlords, who will have fewer options and a longer process to regain possession of their property when a tenant falls into rent arrears.
Why rent guarantee insurance is crucial
RGI provides landlords with rent payments when a tenant has defaulted, protecting their income and the agent’s management fee (once the tenant has defaulted for two months and the eviction process starts). The extended eviction process under Section 8 can be costly and time-consuming; RGI undertakes the legal proceedings associated with regaining possession of the property, including issuing the relevant notices – leaving letting agents free to focus on their other responsibilities.
Furthermore, with the protection of RGI landlords may feel more secure and be willing to consider a wider pool of potential tenants, reducing vacancy rates.
By providing an essential safety net, rent guarantee insurance gives landlords confidence in the private rental market and reduces the administrative burden on letting agents. To find out more about rent guarantee insurance and how you can earn an additional income for your agency, contact the Alan Boswell Group team at 01603 649727.
Alan Boswell Group: Property insurance
Alan Boswell Group has been protecting landlords and their investments for over 40 years with award-winning insurance products. By partnering with us, you can rest assured your clients receive the highest quality cover and service, while you benefit from an additional income stream.
