As the rental market adapts to major changes under the Renters' Rights Bill and tenants gain more rights and protection, landlords need to make sure they are running their portfolios in a more professional, accountable and risk-managed way. From comprehensive landlord insurance to keeping robust documentation, and complaint handling to managing possession proceedings, landlords need to protect their income and legal position. While good communication, thorough tenant referencing, regular inspections, and using a guarantor can all help reduce risk, they can’t eliminate it entirely.
Even reliable tenants can fall behind on rent through no fault of their own. And when disputes arise or court proceedings are necessary, costs can escalate quickly. That’s where legal expenses and rent protection insurance (also known as rent guarantee insurance) can provide critical support. It covers legal fees and lost income to give landlords financial protection and peace of mind if a tenant has damaged your property or you need to recover rent arrears from your tenant, or if you face legal action and court proceedings.
In this guide, we explore how the Renters' Rights Bill increases the need for this type of cover, the key benefits of legal expenses and rent protection insurance, and what else you can do to reduce your risks and prepare for the changes ahead.
The Renters' Rights Bill, which is expected to become law in 2025, will bring about the biggest reforms to the private rented sector in England for a generation. It aims to deliver a fairer and more secure rental market by increasing protections for tenants. But these changes also mean added responsibilities and potential costs for landlords.
One of the biggest shifts is the abolition of Section 21, which currently allows landlords to regain possession of their property without needing to give a specific reason. Under the Bill, all evictions will need to go through Section 8, which requires landlords to prove a valid ground for possession, such as rent arrears or antisocial behaviour.
On top of this, the threshold for serving a Section 8 notice based on rent arrears is set to rise. Instead of two months' arrears, the tenant will need to be at least three months behind before notice can be served, and the notice period will increase from two to four weeks. This means landlords may not receive any rent for at least three months before they can begin possession proceedings. Find out more about this in our article, Renters’ Rights Bill: What’s happening to evictions and section 21?
The result? A longer, more complex and costly eviction process.
Paul Shamplina, founder of eviction and housing law specialists, Landlord Action, explains:
"With the removal of Section 21, landlords will need to navigate a more rigorous legal process under Section 8, which will be more time-consuming and costly. Legal expenses insurance serves as a crucial safety net, covering the substantial costs of legal proceedings, court fees, and professional representation. Coupled with rent protection insurance, which provides essential income protection when tenants default, these policies are more important than ever."
Whether you’re dealing with a tenant who can’t pay the rent and has fallen into arrears or tackling a complicated legal dispute, rent and legal protection insurance for landlords provides support and reassurance by offering an additional layer of security.
Legal expenses insurance covers the costs of dealing with legal issues involving your tenants, such as:
Legal issues can be costly, but with legal expenses insurance, you have the financial support needed to cover legal fees and resolve disputes effectively. Total Landlord’s policy includes up to £100,000 in legal expenses cover, plus access to 24/7 legal advice.
Rent protection insurance helps landlords reduce financial risk and maintain stability in an evolving rental market by making sure your rental income continues even if the tenant stops paying. Total Landlord’s policy pays out up to £2,500 per month for up to six months of missed rent, helping you maintain cash flow during arrears.
Steve Barnes, Head of Broking at Total Landlord, adds:
"Our legal expenses and rent protection cover has been developed with landlords in mind, offering financial security during what may become more prolonged legal processes. It gives our customers confidence that they won’t be left out of pocket when something goes wrong and is available as an ‘add on’ to our buildings and contents insurance policy."
Find out more about Total Landlord’s legal and rent protection insurance, which can be added to any buildings and contents policy.
While insurance provides a safety net, prevention is always better than cure. Here are three key steps to support your legal and financial protection which have always been best practice but will be more important than ever once the new laws come into force.
Proper referencing is essential for selecting reliable tenants and is usually a requirement for insurance claims. At Total Landlord we recommend a minimum of a four-point reference check. Make sure to:
Be alert to red flags such as:
Check out Total Landlord's guide to tenant referencing for detailed steps.
If you have any concerns about a tenant’s financial stability, a guarantor can provide an additional layer of security. This is particularly relevant for:
As all tenancies will become periodic under the new law, guarantor agreements must reflect ongoing liability. Read more in Total Landlord’s guide to guarantors, which also explains some of the other important changes to consider with the passing of the Renters’ Rights Bill and specific provisions concerning guarantors. From a landlord’s or agent’s safeguarding viewpoint, it will be more important in future to rely on a good rent protection policy than a guarantor.
Under the Renters' Rights Bill, the Decent Homes Standard and Awaab’s Law will apply to the private sector, meaning landlords must respond to health hazards such as damp and mould within a specific time frame or risk severe penalties. Regular inspections can be beneficial to the landlord tenant relationship and an opportunity to increase communication with tenants, as well as being a requirement of most landlord insurance policies. Inspections can help you:
See our ultimate guide to inspecting your property to find out more about how to plan inspections and know your rights if a tenant refuses access.
The Renters’ Rights Bill will bring more accountability and complexity to the private rental sector. Having robust legal and financial protection in place is the best way to prepare for these changes. By combining comprehensive landlord insurance, legal expenses and rent protection cover, and proactive management practices, you’ll be in the strongest possible position to navigate the future of renting.
To find out more or to get a quote, visit Total Landlord's website or call 0203 907 1779.
