Find a Lawyer Legal Directory at  - Article Details

Landlord entitlements when tenants default

Date Added: February 20, 2010 04:18:31 PM
Author: Administrator
Category: Legal Experts

Landlord entitlements when tenants default

Author: Paul Buchanan

The recession may or may not be over – depending on what you read and whose figures you trust - but for many tenants, especially those who have lost their jobs as a result of the economic downturn, meeting their rent obligations could be a step too far.

In a worst case, this can result in defaults, which could leave you, as a property owner, out of pocket.

Fortunately, it is possible to arrange property owners' legal expenses and tenant default insurance – as an add-on to your property owners' insurance – that will pay you the rent you are owed, from one month after the date of default until you manage to regain control of the property with vacant possession (up to 12 months). So if your tenant cannot – or will not – pay you your rent, the insurance can (which can cover you for an indemnity up to £25,000).

It goes much further than this. For a modest premium per property, it can also cover the legal cost involved in regaining control of your property and also any outstanding rent. This can run into thousands of pounds and is well worth having, because otherwise you may not be able to afford the cost of going to court for what might be relatively modest sums. Repossession costs are not normally covered for the first three months.

This sort of property owners' legal expenses insurance covers you in a wide range of circumstances that go far beyond rent disputes. For example, should you get into a boundary dispute with a neighbour or need to initiate (or defend) legal action relating to something that could result in physical damage to your property, this insurance would provide both legal advice and, provided the solicitor considers there is a reasonable chance of success on your behalf, the legal expenses involved in taking action. This is usually up to as much as £50,000 in any year, so it should cover most events.

There are other important areas where this insurance can be invaluable, because it covers such events as contract disputes relating to suppliers such as decorators, builders and so on. It also extends to cover debt recovery from suppliers (or customers) should the need arise.

Even more importantly (for some) representation is available in respect of appeals against HM Revenue and Customs following corporation tax, self-assessment or VAT enquiries. The cost of getting involved in a tax investigation can be significant, because of the amount of time and paperwork involved – quite apart from the legal complexities – so such representation can be invaluable.

With many property owners employing cleaners and other maintenance staff, it is reassuring to know that employment disputes and any resulting compensation awards are also covered by the property owners’ legal expenses insurance.

It is therefore important to seek independent professional advice before making any decision about your landlords insurance. You should always ask your insurance advisers what experience they have of dealing with residential and/or commercial rental property insurance.

Article Source: Link

About the Author

Paul Buchanan writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.

You must be logged in to leave a rating.
(0 votes)

No Comments Yet.

You must be logged in to leave a Comment.

    A Debtor’s Legal Rights and Protection against Creditors and Debt Collectors

    First and foremost, you should understand that the Consumer Protection Act protects you against not only your creditors but also the debt collectors at the State Level.

    [Read more]

    Why List in a Legal Directory?

    Anyone serious about promoting their law firm should add your URL of your law firm's website to every Law Directory they can. It's just good business to promote your law firm on the Internet.

    [Read more]

    Top Rated and Effective Link Building

    Link building, as the name suggests, is an act of building links for search engine optimization purposes. There are many ways of building inbound links to a website, but some are more efficient and effective than others.

    [Read more]

  • Featured