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 – https://harringtonslettings.co.uk/do-i-need-a-guarantor-for-student-housing-in-brighton/

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.

Summary

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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google-review Review
Tegan
Tegan
17:30 22 Feb 24
Have been very accommodating and helpful when calling agents. They have been very helpful in being able to secure a house for students.
TheFlyingCrocodile
TheFlyingCrocodile
16:42 21 Feb 24
Went above and beyond to get things sorted for me
Brittany Stace
Brittany Stace
11:18 24 Jan 24
Harringtons have been incredibly helpful and supportive of us as new renters and they have been super efficient in getting all of the documents sent through and signed in such a short period of time. Thank you!
Georgie Prebble
Georgie Prebble
20:36 05 Jan 24
Jade Innes
Jade Innes
10:24 04 Jan 24
So far the service has been good. The staff are very friendly and quick to respond to any questions and requests.
Polly Smith
Polly Smith
11:17 28 Dec 23
we chose this letting agents as they chose a good bills company that is much cheaper than other agents. When viewing houses the staff were very friendly and have been very helpful in answering our questions and making the process as easy as possible.
Emma Howe
Emma Howe
16:06 14 Nov 23
I would rate Harringtons Lettings a 5/5. Very lovely on the phone and very quick and easy to communicate with via email. Any problems have been resolved in no time at all. So far so good!I found Harringtons via Rightmove.
Akwisitions Feedback
Akwisitions Feedback
16:25 30 Oct 23
Very responsive and super helpful throughout the process. Highly recommended!
Chloe Ballard
Chloe Ballard
17:28 02 Oct 23
Although I have only been renting with Harringtons for a short period of time, I have had nothing but a positive experience. From viewing to admin updates. The admin team especially are very polite and quick to respond and I have no doubt that the rest of my tenancy will run smoothly. I would recommend to anyone considering renting in brighton.
Matthew Ball
Matthew Ball
11:46 19 Sep 23
Professional communication with tenant although entirely impersonal. There was a bigger disconnect in their communication with the landlord in most cases, which seemed to be either slow or non-existent (discovered after contacting the landlord directly).Property was full of spider webs on day 1 despite apparently being professionally cleaned. Took a day off of work to clean it on move out day, leaving it cleaner than when it received but still had to pay part of the deposit for professional cleaning.It has been a while since I have rented, but I'll avoid letting agencies completely now if this is anything close to the average renting experience.
Ronan SK
Ronan SK
12:38 12 Sep 23
Great professionalism/communciation from the start up until the end of my tenancy. Definitely set the standards for what agencies should be like. Highly recommend to those within Brighton.
Daniel Sutton
Daniel Sutton
10:29 24 Aug 23
I have rented with Harringtons Lettings before and have always found the agents to be quick, efficient, friendly and helpful. I loved their service so much I have chosen to rent with Harringtons again. Faultless 😊
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