PropNex Realty, in collaboration with financial advisory firm SingCapital, has introduced a Rent Protection Insurance (RPI) programme for landlords in Singapore, aimed at transferring the risk of loss of rental income suffered by a landlord to the insurer.
“The introduction of the RPI will provide a viable alternative of going to the Subordinate Courts to seek compensation – a tedious and time consuming process for all parties,” said Lim Yong Hock, Senior Vice President of PropNex Realty.
“The RPI is attractive as it offers would-be landlords a considerable peace of mind and assurance,” Lim added, also mentioning that it is very affordable with premiums of about 15 percent of one month’s rent with a minimum cap of S$250.
According to PropNex, the benefits of the new product include coverage for loss of rent due to a range of risks such as tenant eviction, rent default, malicious damage to property resulting in periods of non-tenancy and the property agent absconding with the rent.
The product will also provide coverage for the cost of engaging legal professionals to evict tenants as well as the commission fee payable to estate agents upon signing a new or replacement tenancy agreement.
“No matter what you are investing in, it is important to cater for the unexpected. As a smart landlord, you should anticipate the various problems a tenant might pose in the future, especially situations that might affect your rental income,” noted SingCapital.
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