Now more than ever is a great time to take out Rent Guarantee Insurance. Find out why below...
Since the start of April, the government job retention furlough scheme has contributed to the costs of furloughed employees National Insurance and pension payments. However, on the 1st September employers will have to contribute 10% of furloughed employees ages; rising to 20% in October before the scheme finishes later in that month. Due to this, it is anticipated that there will be a rise in redundancies with employers struggling to pay these costs. This in turn will lead to a rise in unemployment. If tenants become unemployed they could enter rent arrears, placing pressure on a landlord's finances.
The unemployment levels are set to rise to 2.5 million by Christmas at the end of the year. This amounts to a huge 7.5% of the workforce. Compared to early March levels, prior to the Coronavirus lockdown, this has increased from just 3.9%.
As well as this, the increasing relaxation of lockdown restrictions means that society are continuing to spend more and more in the community at their local businesses as well as on commuting. An increased expenditure will also lead to difficulties in making rent payments.
Our Rent Guarantee Insurance (also known as rent protection insurance) acts as a safeguard if your tenants come into the unfortunate situation of not being able to pay rent. It can cover missed rental payments and cover any legal expenses you may incur. If you are interested in Rent Guarantee Insurance please contact us here.
