I have a query about protecting rental income as a Landlord

[carina62]

I am in the process of selling my 2nd property and i have tenants living there at the moment. My tenants are quite happy for me to sell the house even though they will have to find alternative accommodation. My question is - if my tenants move out BEFORE i sell the property, how am I expected to pay the mortgage if i will not be getting any rental income? I hope it will not come to this (ie I get to sell the house before the tenants move out) but was wondering what to do in these circumstances as i know i would struggle to pay my existing mortgage and the 2nd mortgage. Thanks

[nemesis45]

Re: I have a query about protecting rental income as a Landlord

You will have to " negotiate" with your tenants on their moving date and the rent payable.
There is I presume a deposit to be repaid here.

[carina62]

Re: I have a query about protecting rental income as a Landlord

They are my partner's family i am renting out to so we have already amicably discussed the situation and i suppose i am hoping for the ideal situation whereby the house sells before they move out in which case it will not be a financial problem for me - fingers crossed it will go to this plan.

[enaid]

Re: I have a query about protecting rental income as a Landlord

If they are prepared to stay in the house until its sold you would possibly have at least a couple of months while sale etc went through for them to find new accommodation.
On the other foot some buyers maybe be anti buying a house with a tenant unless you can assure them they would be gone before completion

[carina62]

Guaranteed rental income insurance companies

Can anyone recommend any insurance companies that can guarantee rental income from tenants if for some reason they cannot or won't be able to pay their rent? thanks

[des8]

Re: Guaranteed rental income insurance companies

Not in the business of recommending individual companies, but if you google "rent guarantee insurance" a number of insurers are listed.
If you do effect such a policy, do be aware that all conditions of the policy will need to be met if a claim is to be successful, so make sure you understand the policy before purchasing.