Homeownership is at its lowest for 30 years, and Generation Rent is facing a future where owning their own home is more challenging than ever. Although the average rent in Great Britain ended the year up by 1.6%, landlords have not yet felt the full impact of the tax changes, so there is uncertainty around future rent increases. As many advisers look after their landlord client needs, offering to look after their tenants’ needs by making them aware of the wide range of income protection products on the market makes sense.
Protection may be seen as just another cost to add to an increasing monthly budget – but actually, now couldn’t be a more important time to have this conversation. Income protection product options are available to suit most circumstances, including budget and unemployment cover.
Would the majority of tenants even be aware of the type of protection they could and should be considering?
Just having an initial discussion around the importance of protecting their monthly income, should they encounter financial difficulty, would raise the awareness that protection advice isn’t just for when you buy a home. You can expect that tenants will have the same perceptions as homeowners around the welfare benefits that would be available to them should the worst happen – however these benefits may be harder to access and income protection is another, practical consideration.
As an adviser, ensuring your buy-to-let landlords are aware that though rental voids can be covered by some letting agents or insurance policies, this may only provide cover in particular circumstances or for a limited period of time.
It is worth highlighting to landlords that by creating the opportunity for you to talk to their tenants about income protection that this will inevitably benefit both parties.
Tenants are your first time-buyers of the future, so establishing a relationship now can only have positive impact for the long run.