Why Rent Protection is More Important Than Ever
As the government prepares to introduce the long-anticipated Renters’ Rights Bill, landlords across the UK are bracing for significant changes. While the Bill aims to improve security and transparency for tenants, it also introduces new challenges for landlords — particularly around regaining possession of properties and ensuring rent is paid consistently.
With these shifts on the horizon, Rent Protection Insurance has become more essential than ever.
What is Rent Protection Insurance?
Rent Protection Insurance, sometimes known as Rent Guarantee Insurance, safeguards landlords against the risk of tenants failing to pay their rent. In the event of arrears, the policy typically covers lost rental income and may include legal expenses to regain possession of the property if necessary.
What’s Changing with the Renters’ Rights Bill?
While the final version of the Renters’ Rights Bill is still being finalised, here are some of the key proposals that landlords need to be aware of:
Abolition of Section 21 “No Fault” Evictions: Landlords will no longer be able to end tenancies without giving a reason. Instead, they must rely on Section 8 grounds, which can be more complex and time-consuming.
More Stringent Notice Requirements: New rules will extend notice periods and make it harder to repossess a property quickly, even in cases of rent arrears.
Strengthened Tenant Rights: Tenants will have greater protection from eviction and more leverage in disputes, which may result in delays in possession proceedings.
These reforms are designed to create a fairer rental market — but they also increase the risk and potential costs for landlords, particularly when tenants fall into arrears.
Key Benefits of Rent Protection Insurance
With these changes in mind, here’s why now is the right time to consider Rent Protection:
1. Guaranteed Rental Income
Even if a tenant stops paying rent, your cash flow is protected. Most policies will pay the full monthly rent for up to 12 months or until vacant possession is obtained.
2. Legal Expense Coverage
If you need to evict a tenant for non-payment or breach of tenancy, Rent Protection Insurance typically covers legal costs — which can be substantial under the new legal landscape.
3. Peace of Mind in Uncertain Times
With legislative reform introducing more complexity and uncertainty, knowing that your income is secured provides reassurance and helps you plan ahead with confidence.
4. Support from Professionals
Claims are usually managed by experienced legal and tenancy experts who understand how to navigate possession claims — especially critical when Section 21 is no longer an option.
How We Can Help
As your managing agent, we are here to guide you through these changes and ensure you are protected. We offer a comprehensive Rent Protection policy, known as Rent in Time, through trusted providers that not only cover arrears but also offer full legal support in the event of a dispute and cover legal costs to regain possession of your property.
If you’d like to discuss how Rent In Time could benefit your specific situation, contact us today to review your options and ensure your rental income is protected — no matter what changes the future brings.
