Landlords have been advised that not taking out rent protection insurance is a risk as they do not know whether their tenants will have a job in a few months time.
Let Insurance Services claims that it can be a gamble for landlords as to whether their tenants are going to pay the rent.
Therefore, before signing any tenancy agreements, landlords should take out a reference on a tenant and do tenant credit checks.
However, having rent protection insurance can give extra peace of mind, especially at a time when there is a great deal of financial uncertainty for many people.
Michael Portman, managing director at Let Insurance Services, said that even if landlords have a good quality tenant "there is no guarantee that that tenant will have his job in three or six months time and will be able to afford to pay the rent".
The average monthly rent in the UK during November was £656, according to Rentright's Residential Rental Price Index.
Published on: January 5, 2009