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Insurance: risky lettings market looming

publication date: Oct 3, 2009
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The rental market is on the move again. However, Let Insurance Services report that this is the time when landlords are most at risk from defaulting tenants.

Potentially, risks are likely to increase in the autumn, the traditional busy period for new lettings. This year, peak rental demand will be boosted by the disappearance of reluctant landlords from the market. Most sources believe these properties are going back onto the sales market.

“This is mostly good news as it helps to stabilise the current imbalance in supply and demand for rental property found in some areas of the country,” said Michael Portman, MD, Let Insurance Services. “However, this is the moment when risk management is most crucial. Landlords, potential investors and their agents must take it seriously.”

There are two prime tools for risk management in the PRS; intelligent referencing systems to reduce the risk of defaulting tenants in the first place, and rental guarantees. Let Insurance Services, whose directors are all investment landlords and include the past Chairman of ARLA, provides access to both of these tools through recognised lettings agents.