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Lighthouse Protects Landlords
Following increasing reports that tenants are falling into rental arrears as the recession bites, Lighthouse Property Services is including 12 months’ Rent Guarantee insurance as standard within its private sector management packages.
Previously Lighthouse offered six months’ Advantage Rent Guarantee from HomeLet, the UK’s largest tenant referencing and insurance provider, to landlords commencing new tenancy agreements with the option of extending this to 12 months for an additional £90. Private Lettings Manager Simon Sewell (pictured) said, “Now a full year’s HomeLet cover is included within our costs at the start of new tenancy agreements subject to suitable references.
“By extending this it will help us to ensure we provide the maximum protection for our private sector landlords at an affordable and competitive rate." According to HomeLet, Rent Guarantee claims were up by 20 per cent in the first quarter of 2009 compared to the same period in 2008. January saw the biggest increase, with 43 per cent more compared to the same month last year. The policy includes a comprehensive credit check, financial reference, residential reference, affordability check and Rent Guarantee insurance cover with no excess. As well as covering rental payments for up to a maximum of six months the policy also covers all legal costs incurred in evicting a tenant as a result of non-payment of rent up to a maximum of £50,000.
HomeLet MD John Boyle said, “We are delighted to see that Lighthouse continues to support its landlords by providing them with HomeLet insurance at a time when a growing number of tenants are defaulting on their rent payments. In 2008 HomeLet paid out £2.8 million in Rent Guarantee claims and this is money many landlords cannot afford to lose.”