Getting into the property market can be a very prudent opportunity for monthly income, with many people now using this as an alternative income stream, pension fund, or simply a new career choice.
Property of course doesn’t come cheap as a new venture, with large deposits required in many cases – so the next best alternative is obtaining rent to rent properties, also known as subletting.
Giving a landlord a guaranteed rent every month is a nice hassle free arrangement for them and with the added bonus knowing that their property will be managed can be an additional deal maker.
Rent to rents are commonly set up as aforementioned; giving the property owner a guaranteed rent every month, with the individual renting usually running the property as a HMO, with multiple income streams for various tenants with the aim to achieve a monthly profit.
These set ups can work out well if run correctly; and a nice hassle free income for the landlord – however troubles can be faced with insurance due to the setup of the property. In most cases insurers do not look to cover properties in which are sublet, and in most cases insurers have endorsements/exclusions for properties that are sublet – so in this instance the landlord will have to find a new insurer. Also, again many insurers do not insurer properties that are set up as a HMO, so you will have to find an insurance provider that can accommodate both a property that is sublet and a HMO.
This can be hassle for the landlord and may pass the burden onto you, to which you may have a bit of a deal breaker on your hands! Luckily – we have markets who actively insure properties of this ilk so we have no troubles with sourcing quotations to cater to these requirements.
So if you need help with your rent to rent property insurance, call our team today.
