Life has grey areas.
Sometimes, situations look simple on the surface, but a deeper dive reveals complexities that need more understanding and more thought.
Careful consideration at these times, and professional advice can be a godsend at these
Here are a few examples:
- Sub-letting Situations: If your tenant is sub-letting the property (with your
permission), the situation can become more complex. You may not have a direct
relationship with the sub-tenant, which could complicate matters if they fail to pay
their rent. Balls get dropped, lines of communication break down and suddenly weeks and months start going by without resolution. - Corporate Tenants: Renting your property to a corporation for use by an
employee or executive, may mean rental payment dynamics can be different. While
corporations might be seen as reliable, the potential for corporate restructuring,
bankruptcy, or other issues could impact their ability to pay rent. - Ambassadorial Rentals: Situations have occurred in the past, both here and abroad, when a long term tenancy agreement is sought by Embassy staff from another nation. The possibility for default, a change of government, a sudden change in diplomatic relationships are all present, and serious consideration should be given to the advisability of letting houses under these conditions.
- Renting to Family or Friends: Renting to people you know personally can sometimes prove more fraught than first envisaged. While you might trust them to pay their rent on time, personal relationships can complicate financial matters and create dilemmas for the landlord than when renting to a comparative stranger.
- Short-Term Rentals: Operating short-term rentals, Airbnb style, the need for rent protection insurance may need to be clarified. The frequent turnover of tenants and the platform’s policies can create a unique set of considerations.
The decision to take out rent protection insurance should be carefully considered in these and
other complex scenarios. It’s often a good idea to seek professional advice to ensure you fully
understand your situation’s potential risks and benefits.
