Our rent guarantee is one of the most comprehensive and best value products on the market. Your rental property is most likely one of your most expensive assets, so don’t let it become a liability.
Despite the thorough vetting we always undertake, sometimes unexpected circumstances arise. Unemployment, inability to work due to sickness or marital breakdown can all lead to tenants not paying their rent. The consequences for you as a landlord can be serious, you could find that you’re unable to keep up with repayments on a mortgage or secured loan.…
By giving our landlords a FREE rent guarantee protection policy, we know that all our landlords can relax by having peace of mind for one of their most expensive assets.
Find out more about our superb rent guarantee available to all our landlords below. Still have a question? Then please contact us.
RENT GUARANTEE OVERVIEW
DON'T RENT WITHOUT RENT GUARANTEE
Landlords are, generally, as a group of people very cost conscious – why would they not be. They often just see this is yet another insurance policy and cost but let us walk through a typical scenario of a tenant who does not pay and the typical costs to regain possession, then lets again look to see if rent guarantee protection represents good value (FREE with our service, but charged quite a premium with other agents!):
So, you are unlucky enough to get a tenant who can no longer afford their rent, despite passing all the credit and referencing and employment checks, maybe they lost their job, or have ill health, plenty of reasons a good tenant can go bad.
Before you can start court proceedings you have to wait for the tenant to be 2 months in arrears – that’s right, you are already out of pocket 2 months, so in our example the rent is £1,200 pcm you are out of pocket now £2,400.
So, no money comes in, you need to evict as the tenant will not leave. Solicitors need to be instructed, typical cost for paperwork and attendance is £450.00. Let us keep tally – thats now £2400 + £450 = £2,850.
You now have to pay the court fee, £330.00.
It usually takes 3 months to get a court date, that is a further 3 months lost rent, 3 x £1200 = £3,600.
You win in court, great, but do you believe you stand much chance from getting rent owed from a non working tenant with no money? Even if the judge so orders, it is almost impossible to enforce. The court will then give the tenants 14 days to leave – that is another 1/2 months rent or £600.
They rarely leave.
You now need to get a bailiff to attend, £110. They tend to take a further month to come – that’s another months rent or £1,200.
You will be advised to get a full lock change, £150.00.
Are we keeping track here, let us add this up: £2,400 + £450 + £330 + £3,600 + £600 + £110 + £1,200 + £150 = £8,510.
This is if things go well! A new “trick” of tenants of late is to move out but not take their belongings, you then become the unwilling but legal guardian of their stuff, you have to give notice to move, another month, another £1,200, you then have to arrange removal and storage, you need more legal defense when the tenant claims their stuff is missing or broken… this then becomes a counter claim against you…
FIND OUT MORE ABOUT HOW WE HELP LANDLORDS
We are happy to come meet you at a time and place that is suitable to you, in or out of office hours.