This topic has popped up twice in the last few days; does a tenant need contents insurance??

As a tenant in a rental property it is your responsible to insure your own possessions and you are well advised to do so, many letting agents and landlords will make a point of requesting sight of a suitable contents insurance policy before taking up the tenancy. If you are renting through an agent you can ask them for details of any tenant’s contents insurance products they can offer or would recommend to you.

As an agency, we know many companies that offer specific tenant insurance policies that can protect various different things along with your own contents…they could even cover rental payments should something happen to you. We would also suggest to find a policy that offers you the protection you require, this may not always be the cheapest but when you need it you want to know you’re covered. Many policies now also offer accidental damage protection against the property fixtures and fittings, this is a great alternative to using your deposit to pay for accidents at the end of the tenancy.

It is illegal for a letting agent to advise on or sell such insurance products unless they are authorised by the Financial Services Authority (FSA), or, directly regulated by a broker registered with the FSA.

As a tenant in a rental property you don’t need buildings insurance, only contents insurance. As the tenant you do not own the building and therefore don’t and cannot insure it, this should be in place from the landlord.

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If you wish to discuss any matters arising in the rental of a property either as a tenant or as a landlord then please get in touch now…01202292400 or info@gordonbarker.com

The news of rents being set to rise an average of 2% in 2013, according to Rightmove, is being widely accepted but we feel that the figures do not necessarily provide an accurate picture of our local community, especially looked back in 2012. We believe hotspot areas such as London will bear the brunt of this increase and have done for some time but it has to be said that in some cases, popular property types in the local area will see this rise, and in some cases a much higher rise.

All landlords should be increasingly mindful of tenants’ ability to meet rising rental demands in the current economic climate, heightening risk of arrears and void periods. So far, more than a fifth of current tenants pays 50% or more of their take-home pay on rent. Raising rents, and especially raising them too far could put the property out of reach of most tenants and could render the property empty for some time.

At Gordon Barker we believe that squeezing tenants too far on rental prices can lead to many problems and would urge that great thought is put into deciding how to approach your renewal. Take more factors into account than just the rent they will pay, every situation needs to be looked at individually in order for a landlord to get the best return on their investment. This should include factors such as the longevity of the tenancy, the avoidance of void periods and the quality of tenant based on their previous references.

A good tenant, although paying slightly less rent, can return a much high ROI due to less maintenance, more regular rent payment and a longer tenancy period meaning little/no void periods and much less money lost. a bad tenant, who could be paying a higher rate, will cost more in the long run with maintenance problems, non payment of rent and also a high turnover of tenants is always much more expensive for a landlord.

If you feel you haven’;t the right tenant in your property, or would like the right one found for your empty property then please call Aaron on 01202 292400 today or email aaron@gordonbarker.com.