Do you need a Rent Guarantee policy and is now the time to get it?
The rental market can be tough, especially with the current cost of living crisis. Is now the right time to consider rent protection incase your tenants default on their rent? Here is what you should consider before making a decision.
Becoming a landlord involves a certain a level of risk. What happens if your tenant doesn't pay the rent?
What is a rent guarantee policy?
Quick tip: Rent guarantee policies can also be called rent protection, rent guarantee insurance and landlord rent insurance.
A rent guarantee policy covers you as a landlord against loss of rental income if your tenant fails to pay.
If the unfortunate happens and your tenant stops paying then the eviction process can take a long time, leaving you without any rental income for a prolonged period. A rent guarantee policy would kick in at this point and cover the rental income for you, this can be worth its weight in gold particularly if you have a mortgage or other outgoings you are paying on the property.
What about eviction costs?
Most good policies will also include legal expenses when it comes to evicting your tenant. If you need to go to court this can be a very costly expense, make sure your policy includes this cover and it could save you a small fortune in the long run.
How much does it cost?
As with any insurance policies the costs vary depending on the level of cover you choose to go with. Shop around to get the best policy for you but you can usually find a decent level of cover for a few hundred pounds.
Many letting agents including ourselves offer rent guarantee policies to landlords, which saves you the time and hassle of comparing policies.
If you are thinking of protecting your rental properties or evaluating your portfolio then get in touch with one of the team on 0151 644 6000 or rachael@lesleyhooks.co.uk