Tenant liability insurance has been highlighted as a way for letting agents and landlords to increase protection and peace of mind for all stakeholders in a rental transaction.
Rental market service provider Tenant Shop says that as well as protecting a landlord’s investment, liability insurance can improve trust and increase the chances of long-term tenancies.
Tenant liability insurance is not a requirement, but some landlords or letting agents are requesting that renters take out such a policy before a tenancy is granted. It covers renters for accidental damage to furniture, fixtures and fittings that they are responsible for under their tenancy agreement.
Protecting properties remains crucial
Tenant Shop highlights that, alongside providing tenants with safe accommodation, protecting their investment will be a top priority for most landlords.
Having the option to make a claim in the event of accidental damage to a rental property will save the landlord money. It also means a reduced risk of the tenant having to fund repairs or replacement items out of their own security deposit at the end of the tenancy.
Glenn Seddington, managing Director of Tenant Shop, comments: “Tenant liability insurance provides a win-win situation. The tenant improves their chances of getting their full deposit back at the end of the contract, while the landlord can remain satisfied that they shouldn’t have to foot the bill for potentially costly accidental damage.
“This can contribute towards fewer deposit disputes between landlords and tenants, helping tenants to receive their deposit back quicker and giving landlords the opportunity to prepare for the next tenancy effectively,”
Trust is the key to tenant-landlord relationships
Seddington continues: “When there are trust issues between landlords, agents and tenants this can lead to access obstructions and failure to report maintenance issues which could cause long-term problems.
“On the flipside, a lack of trust can also be problematic for tenants, leading to maintenance requests not being dealt with quickly or landlords failing to show discretion if they have a personal issue which affects their tenancy.
“Fractured relationships can increase the chances of deposit disputes, the need for evictions and ultimately void periods. Tenant liability insurance is one of many important factors that can help to build trust between stakeholders and subsequently avoid these negative issues.”
Better conditions for long-term tenancies
“For landlords and letting agents, maintaining long-term tenancies with reliable renters will always be a principal aim, while many tenants will also be keen to have access to stable accommodation from a landlord they trust for an extended period of time,” says Seddington.
“Of course, not all tenants will want a long-term tenancy, but measures like liability insurance, looking after the property and paying rent on time can contribute towards building trust and providing them with the opportunity to stay as long as they want in a happy living environment,” he concludes.