Rent Guarantee Insurance2020-02-04T23:59:28+00:00

Rent Guarantee Insurance Service

When tenants can’t or won’t pay, you are protected, not only from rent arrears but also from any tenancy breach.

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What does our Rent Protection cover?

  • Full rent protection for the total monthly rent, for up to 4 tenants, as named on the Tenancy Agreement
  • Rent payable until vacant possession is obtained with no time limit, regardless of when the fixed term tenancy ends
  • Nil excess with rent paid from the point of the first arrears
  • Cover available for six or twelve months to suit you
  • Total claims limit of £50,000
  • Covers breaches of the tenancy agreement by the tenant, including non-payment of rent and expired Section 21 notices
  • Legal costs to obtain possession of the property if the tenant fails to pay the rent
  • Court attendance included as part of the service
  • Pay Monthly option available
  • Policy is fully transferable to ensure continuous cover even when the tenants change (subject to satisfactory references)

Relax in the knowledge that your rent is protected, and you will not be out of pocket.
Our obligation to you is that in the event that there are any defaults in the payment of the Rent (as set out in the tenancy agreement) by the Tenant(s)/Guarantor(s) within the tenancy, we will pay Rent monthly, as per the rent amount on the tenancy agreement, until vacant possession is gained.
Payments will be made subject to any deductions agreed in the agency agreement. Deductions will also be made for any outstanding charges due from you.
In the event of payments being made under this warranty, all of your rights as Landlord to recover such sums shall be subrogated to the Agent or their insurer in order to affect recovery of sums paid (in the name of the Landlord if necessary or expedient). By choosing this service you confirm and agree to the same. Recovery of rents paid out shall be at our sole discretion.
Should you receive any funds from any Tenant(s)/ Guarantor(s) after any date of default which results in us having to pay any monies to you under the terms of this guarantee, you shall immediately notify us of such receipt and shall forward such funds to us immediately on receipt.

Why Rent Guarantee?

Landlord’s Journey

In both examples the rent is £500.00 PCM and rent is due on the 1st of each month.

Landlord A: Has Rent Guarantee

  • 1st February tenant stops paying rent
  • The letting agent chases the tenant for the rent but no rent is paid
  • The letting agent still pays landlord their rent once the rent is outstanding 14 days on month 1, and continue to pay the rent each month until vacant possession is obtained

  • 1st March a Section 8 Notice is served to evict the tenant
  • The letting agent inspects the property to see if the tenant has gone
  • Tenant did not leave when requested
  • The letting agent works with Ashley Taylors solicitors to get a court date
  • The letting agent goes to court with the solicitors to get the tenant evicted
  • The letting agent checks the property for vacant possession, the tenant still hasn’t left
  • The letting agent contacts Ashley Taylors to request bailiffs
  • The letting agent meets with bailiffs at the property with a locksmith and secure the property
  • The letting agent carries out a check out report and deducts any damages
    caused by the tenant from their deposit
  • The letting agent is now able to re-let the property

Total cost to landlord on set up: £200 + VAT
Total cost to landlord for the eviction: £0.00
Total loss of rent whilst property is occupied: £0.00

Landlord B: Does not have Rent Guarantee

  • 1st February tenant stops paying rent
  • The letting agent chases the tenant for the rent but no rent is paid
  • The letting agent cannot pay the landlord as no rent is received, monthly commission fee of 10% still owed to the letting agent

  • 1st March the Section 8 Notice is served to evict the tenant, there is a fee for doing this
  • The letting agent inspects the property to see if the tenant has gone
  • Tenant did not leave when requested
  • The letting agent advises the landlord to appoint solicitors to evict the
    tenant
  • The letting agent goes to court with the solicitors to get the tenant evicted, there is a fee for this
  • The letting agent checks the property for vacant possession, the tenant still hasn’t left
  • The letting agent advises the landlord to contact solicitors to appoint bailiffs
  • The letting agent meets with bailiffs at the property with a locksmith and secure the property
  • The letting agent carries out a check out report but does not have enough from the deposit to cover both damage to the property and rent arrears.

  • Landlord will need to ensure property is in good repair for property to be re-let.

Total cost to landlord on set up: £As per branch charge
Total cost to landlord for the eviction: £2760.00 inc bailiffs

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These examples refer to England and Wales markets, please ask for Scotland version if needed.

Frequently Asked Questions

What is Rent Guarantee?2020-02-04T23:24:21+00:00

Rent guarantee is a service offered by your letting agent to ensure your rent/income is consistently paid regardless of whether the tenant can pay. It also ensures that vacant possession of your property is obtained at no additional cost to yourself should you have a tenant who cannot pay.

How much rent can be covered?2020-02-04T23:24:59+00:00

The service covers rents up to £2,500.00 per month

Why should I choose Rent Guarantee?2020-02-04T23:25:56+00:00

Peace of mind – Knowing that whatever happens during the tenancy of your property, your income remains covered.

How much excess do I have to pay?2020-02-04T23:26:38+00:00

None, the guarantee covers all costs, no hidden fees or surprises.

How much total rent does the service cover?2020-02-04T23:27:21+00:00

We cover the cost of all missed rent, and all legal costs relating to obtaining possession of the property up to a £50,000.00 claim limit.

Is it really that difficult to gain possession of a property?2020-02-04T23:28:09+00:00

Government and a number of private organisations seek to support the tenants to ensure they are not taken advantage of, this can make the process of gaining possession a long and difficult one, not to mention expensive.

What happens if the tenant doesn’t pay rent?2020-02-04T23:29:01+00:00

From your perspective, nothing much would change. You would be advised by your agent that the tenant is in arears and the rent guarantee is taking affect, they would then update you on any changes to the point they obtain vacant possession of your property.

What happens if I didn’t take out Rent Guarantee?2020-02-04T23:29:48+00:00

You risk your investment. Being that becoming a landlord is a method of investment, many landlords have mortgages to pay, which they are reliant on rent to cover. In instances where a tenant doesn’t pay, it is at the expense of the landlord. In addition, you potentially would have to cover the legal costs if the tenant refuses to vacate the property.

How do I qualify for Rent Guarantee?2020-02-04T23:30:27+00:00

You need to reference any prospective tenants, as long as they meet a suitability for renting the property rent guarantee can be issued.

When do I make a claim?2020-02-04T23:31:09+00:00

All claims must be made within 31 days of the point of first arrears.

What steps do I need to take before making a claim?2020-02-04T23:31:49+00:00

You are required to chase the tenant (and guarantor where applicable) at 3, 7, 14 and 21 days, if no payment has been received at 21 days consider making your claim.

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