A new Rent Guarantee insurance product for landlords has hit the market from Martin & Co and lettings insurance specialist HomeLet.
Called the Martin & Co Promise, the scheme provides cover for missed rental payments, with 100 percent of the monthly rent paid for up to five months from the first arrears.
It also covers legal expenses for eviction costs and covers the whole property, no matter how many tenants a landlord has.
Landlords will also receive 75 percent for two months after the property has been vacated and while they are looking for new tenants.
Ian Wilson, managing director of Martin & Co, said: “We’ve worked closely with HomeLet for over five years and they’ve used our experience of residential lettings to develop this new product and ensure that its features and benefits are tailored to our landlords' needs.
“Sadly, in the majority of cases it’s a change in the tenant's circumstances that makes them unable to pay the rent.
“This can put the landlord in a difficult situation, especially if their rent isn’t guaranteed. Naturally landlords may be sympathetic, but they still need their rent.”
HomeLet managing director John Boyle said he saw an increase in the number of reported illegal evictions by landlords last year.
“Unfortunately I expect this figure to increase again in 2010, which is disappointing,” he added.
“The buy to let market offers a fantastic opportunity for long term investors, but all too often you hear stories of landlords losing thousands of pounds in missed rental payments.
“Anyone’s circumstances can change, and with unemployment set to remain high for some time, I'd strongly urge any landlord to protect their rental income.”
