Landlord Rent Guarantee Insurance – Rent Guarantee or Guarantors?

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  • Landlord Rent Guarantee Insurance – Rent Guarantee or Guarantors?

Is it worth taking out a Rent Guarantee scheme?

Absolutely, a lot of insurance companies now offer rent guarantee schemes that can cover unpaid rent. You will find that most of these require the tenants be a minimum of one month in arrears before it is possible to make a claim. They will then pursue the tenant for the collection of the rent. Then if the tenants continue to not pay they will evict them. Every Scheme is different.

Should I use one of those guaranteed rent companies that pays the rent and maintains the property thereafter?

No, there are various companies like this that offer a guaranteed rent for either single properties or whole portfolios. They often pay slightly less than the open market rental value but then maintain the properties thereafter. What often happens is that these companies suddenly disappear overnight with no rent paid to the landlord whatsoever. Then, on visiting the property find that it is occupied by more people than are on the licence. It is important that you take out a proper rent guarantee scheme.

Could I just ask for a guarantor?

Yes, of course you could just have a guarantor who guarantees the rent. This is normally a mother or father of the tenant. It is totally a matter for you but it is something that you need to take up with your letting agent. Please refer to our previous article regarding guarantor’s –

How much is the Rent guarantee scheme?

Each Scheme is different and there are various products on the market. We would be happy to try and give you full details of any scheme and what the requirements are.

Do I have to have my tenants referenced?

You will find that most rent guarantee schemes if not all insist on having the tenants either referenced or have a guarantor. Appropriate references might include previous letting agent, landlord, employer and a credit check. There will be a set criteria that you will need to follow to put the cover in place.

Will my rent guarantee cover legal disputes?

It depends on the product. Each rent guarantee scheme is different and depends on what the cover limits of the scheme itself. It may be possible to add legal expenses in with the rent guarantee product.

How much would my rent guarantee scheme cover?

Again it totally depends on the cover you are taking out. The policy will only ever cover as much as the tenancy agreement states is due per month. Each individual policy will have its limits of how high it will go. It can be anything up to £15,000. This depends on the cover and so too does the excess.


It can be hard to find the right way to protect your rental income. You can find that certain policies cover rent guarantee but don’t necessarily cover evicting a tenant. It is important that you let us know exactly what you want and we would be happy to obtain a quote. There are various companies out there. Most will require a minimum of a written reference from a previous letting agent, an employment reference and some form of credit check. It is unlikely that you will be able to find a rent guarantee scheme with long standing tenants as the references should be recent.

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