Before we start, let’s take a look at what exactly it means to be a landlord. Once you know the role you’ll play and the responsibilities that this carries, it’ll become much more obvious what exactly you need to insure yourself against. Whilst many have a predetermined image of what a landlord might be, this is very rarely the case. Whilst in some cases, a landlord may take on this role as a business decision, others may do so out of necessity or circumstance.
There are landlords who invest in multiple properties with the intention of renting these properties out to tenants on fixed or flexible lease terms. For these landlords, this is a full-time job and will be something that they are heavily reliant on in order to live their own lives comfortably. For these landlords, securing rental payments on a regular basis will be of the highest importance due to the impact that this income directly has on their livelihood – this can, in part, be secured using Rent Guarantee Insurance, which is something we’ll explain in more detail later on in our guide.
On the other hand, we have landlords who may have stumbled into the role through circumstance; these landlords often have no prior knowledge of how to function effectively as a landlord and require more support in doing so. An example of this is when a property is inherited by a person after the passing of a loved one. This is an unexpected acquisition, however, it may hold sentimental value that makes it difficult to just sell on. In these situations, we often see the inherited property lived in, with the owner’s current property being rented out to another tenant.