Rent guarantee protects your rental income flow from being disrupted. In other words, it helps a landlord get his rent on time. Incase a tenant defaults on rent and a landlord has an insurance of rent protection then his insurance premiums paid will cover up the rental loss. The insurance cover will kick in to protect landlord from bad tenants. It is best to consider such an insurance cover if you have greater mortgage commitments.
Do not let go of your rental income.
Secure your rental income from being lost. The need for such an insurance cover arises when a landlord stays far away from his rental unit and it is difficult to make frequent visits to his buy to let property. Most of the landlords see this type of cover as an extra un-necessary expense that simply eats into their profits. It is not so, just imagine if you were to lose out on several month’s rental payments. Can you afford to fund the mortgage payments yourself? This problem augments if your tenant leaves your house with out informing you. You may stand to lose several thousands of pounds in lost rental income and legal expenses incurred to fight the tenant will be high. Do not forget the amount of time and stress involved.
Your decision to buy this insurance policy may be based on various reasons such as:
If you have a tenant who is known to default on rent, the cover becomes a necessity.
If you are unable to manage such problematic tenants such a cover is vital.
Based on the credit check of a tenant, you can decide if he is a good tenant or a bad one. Even a good tenant may some times create problems and default on rental payment.
Can you repay your mortgage loans on time. If you have bigger mortgage commitments, then it is better to have an insurance cover.
Rent Guarantee Insurance provider will be able to provide you a referencing service. This is usually done through an approved third party. If you have not arranged a tenant reference or credit check already, it makes sense to use the insurance providers. The rent guarantee insurance simply goes a step further to ensure you maintain your income during the dispute.
Compare rates by requesting an insurance quote from different insurance companies and decide on the one that serves you the best.
Gyan k, Expert author, platinum status. For more information on:
Rent Guarantee Insurance
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