Need advice about Landlord insurance and rental guarantee

a_symmetry

I have a maisonette I have been letting for a few years, but each year I seem to get new tenants.  My agreement is nearly up and I'm waiting to hear from my agents to see if my tenants will agree to 6 months or if it'll be a rolling contract.  I am an accidental LL and have mental and physical health problems.  I am absolutely petrified of my flat being empty as I won't have any income to speak and I'm in a lot of debt.
I keep looking at rental guarantee insurance and agencies, but finding it very confusing.  Does anyone know if there is any insurance that will cover rent for a gap in a tenancy in any way?  I am sure I read that there was somewhere.  Also if my tenants want a rolling contract, am I able to advertise for new tenants in the hopes I may get a longer term?  My agents are dragging their feet a little and I'm increasingly stressed but also feel it's better sticking with the devil you know.  So I'm looking into other types of LL insurance in hopes there may be something to cover the gap?
Many thanks
Jen

[Deleted User]

a_symmetry said:

I have a maisonette I have been letting for a few years, but each year I seem to get new tenants.  My agreement is nearly up and I'm waiting to hear from my agents to see if my tenants will agree to 6 months or if it'll be a rolling contract.  I am an accidental LL and have mental and physical health problems.  I am absolutely petrified of my flat being empty as I won't have any income to speak and I'm in a lot of debt.
I keep looking at rental guarantee insurance and agencies, but finding it very confusing.  Does anyone know if there is any insurance that will cover rent for a gap in a tenancy in any way?  I am sure I read that there was somewhere.  Also if my tenants want a rolling contract, am I able to advertise for new tenants in the hopes I may get a longer term?  My agents are dragging their feet a little and I'm increasingly stressed but also feel it's better sticking with the devil you know.  So I'm looking into other types of LL insurance in hopes there may be something to cover the gap?
Many thanks
Jen

Sell the property. You can’t afford void periods  and you don’t even seem to the know the basics of being a landlord. If your current tenants are happy with a periodic tenancy how do you think you’ll be able to get them out at the moment to supplant them with tenants willing to sign a fixed term contact. What if something needs repaired in the property, how will you pay for that? 

AdrianC

a_symmetry said:

I am an accidental LL

Incoming...

Seriously, you aren't. There is nothing "accidental". That's just you trying to deny the fact that you set up and are running this business through conscious choice. Why would you try to deny the business you run, and from which you earn an income? Are you embarrassed by it...?

Also if my tenants want a rolling contract, am I able to advertise for new tenants in the hopes I may get a longer term?

You can ask them nicely to sign a renewed tenancy. Or you can leave them to get on with their lives in their home.

If you want to take a third path, changing your tenants, then issue them with their six month s21 notice NOW. Then, when you know you have vacant possession, you can advertise for replacements. After all, if they dig their heels in, it will be well into 2022 at the earliest before you actually get the place back empty. How much work will it need to be lettable again? How long will it be empty?
In the meantime, you're just giving your customer grief and hassle... Why would you do that?

But if you've got the property vacant, it might be worth selling, if you don't actually want to run this business. Given your health issues, are you up for the potential stress and challenge?
How much is it actually earning you each year, net and post-tax, as a percentage of the capital deployed?
You're in debt - wouldn't that capital be far better used by clearing that debt and giving you savings? I would lay odds that the cost of servicing your debt far outstrips the RoI from your business.

HampshireH

It doesn't sound like you are a accidental landlord...... especially after a few years that becomes a choice to a certain degree.

As above you need to sell your flat.

And no you cannot line up new tenants if your current ones roll the contract in a bid to force them to sign or leave.

Well.....you could but you would ruin any reputation you have with the tenants who don't move in and whose time is wasted and the tenants who live their now and feel they are forced out by underhand tactics. Your letting agent will not be interested in helping line up tenants for a flat which isn't available.

RE insurance in the meantime there are landlord on here who will pop on and advise. However I expect most insurance would require a minimum period before paying out. Your post suggests you may anticipate an imminent void no company is going to issue a policy to pay out immediately.

AdrianC

Since voids are an utterly predictable part of the business, any insurance that covered them would be so expensive as to be pointless.

Remember, insurers sell policies so they can make money. That profit is the money left over from premiums after paying all their admin costs, staff costs, office costs, marketing costs, commission, tax... and claims.

Robbo66

You can get rent protection against non payment but I don't think there is an insurance policy that covers voids, happy to be proven wrong mind. If you want a rent guarantee that also covers void periods then you may want to look at agencies that do rent to rent but you will get below market rent, normally around 20% less