New Insurance Products Helps Landlords

September 24 - As the property market remains largely stagnant during the recession, many landlords are facing the fact that tenants are simply unable to pay their rent.

Many people in South Africa have lost their jobs, and it is not uncommon for tenants to beg landlords for a month's grace on their rent as they seek  another. The problem is that most landlords are dependent on the rent to pay their mortgages or their own rents.

Just Finance, a division of the Just Property group, understands this problem that is facing so many South African tenants these days, and has created a new insurance product that should provide some relief.

The product is actually two pronged and was created for the Just Letting division of the group to assist landlords with the specific problems of covering costs should their tenants default.

The Rentsecure insurance product by Just Insurance guarantees that the rental is paid to the landlord should the tenant not pay.

"If a tenant defaults, the landlord will be paid his monthly rental until the tenant is evicted, plus one additional month's rent thereafter," explained the Chief Executive Officer of Just Property, John Roberts.

As soon as the landlord is financially protected, the group will then go on to the next step of trying to replace the tenant as soon as possible so that no unnecessary losses are incurred.

The other product is the Depositsave, which allows the tenant to pay only a 35% deposit on the property, and the insurance will pay the rest. When the lease ends, the 35% deposit is refunded, subject to conditions.

"We are really doing our best to ensure that landlords and tenants are helped as much as possible in leasing and renting properties," concluded Roberts.