Rent Guarantee
- An insurance backed scheme for which the landlrod and or letting agent pays a regular premium.
- Initiated by completing a form of insurance requiring pre-payment of a premium to enable certainty of rent.
- In the event of tenant default the insurance company will pay the landlord the rent subject to conditions, e.g. landlord deposits must be utilised prior to any payout etc.
- There are strict conditions which if not observed may vitiate the terms witht he insurer refusing to pay the rent.
- When arrears begin to escalate landlords and lwtting agents cannot simply sit back imagining the insurer will bear the brunt.
- There are procedures which must be followed.
- Guarantors and deposits may be required.
- Particularly useful for those landlords absolutely dependant on rental income - if willing to sacrifice a premiem to insure it.
Published: 29 September 2015
Last Updated: 30 November 2021