Lettings agents who diversify to offer tenant liability insurance not only broaden their own business but also increase peace of mind for landlords and renters too.
That’s the assertion of Tenant Shop, which suggests that agents and landlords could follow the example of others in requesting that tenants take out a liability policy before a tenancy is granted - not a mandatory requirement but a way of offering peace of mind, it says.
Tenant liability insurance covers renters for accidental damage to furniture, fixtures and fittings that they are responsible for under their tenancy agreement.
In the event of accidental damage to a rental property, a claim can be made if renters have tenant liability insurance.
Tenant Shop insists that not only will this save the landlord money, it also means the tenant reduces the risk of having to fund any repairs or replacement items out of their own security deposit at the end of the tenancy.
“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,” says Glenn Seddington, Tenant Shop managing director.
“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” he says.
Seddington says a policy of this kind can enhance trust between all parties to the tenancy.
“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” he adds.
“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 says.