What do you need to know about the landlord’s rent guarantee?
Landlord rent guarantee is a rent protection insurance form. The rent protection form will ensure that you will receive your property’s rent, even if the tenant unable to pay their rent.
If you completely rely on your property’s rent then the rent guarantee insurance form will be very beneficial for you. Rent guarantee insurance form will let your mind have a feeling of peace when you let your property to a tenant. This policy will protect your rental income and also prevent you from financial problems. Most of the landlords face rent issues that their tenants did not pay the rent on time, or sometimes the tenant did not pay the rent at all.
You should know about the difference between Rent Guarantee and Rent Protection
Rent Guarantee will protect the rental income in case your tenant will not be able to pay the rent on time. Rental income will cover the amount you will receive in rent during an insured event such as flood, fire, and storms, etc. Rent protection insurance policy mainly covers non-payment of rent because your tenant can’t pay the rent at any time.
Which of the things are covered by the rent guarantee policy?
You must know about the things which are covered by rent guarantee insurance. As you know rent guarantee covers then tenants missed a rental payment but here are some things which you need to know:
Rent guarantee insurance also covers legal expenses to cover any kind of dispute or discussion with the tenants. The dispute must be related to the recovery of the rental amount or eviction
The rent guarantee insurance form also provides you free access to legal advice, which you can take from any lawyer or experienced professional who gives the best legal advice.
Which of the things are not included in the rent guarantee policy?
Every rent guarantee insurance policies are different as they vary from provider to provider. Mainly rent guarantee insurance covers most of the things but here few things which are not included in this insurance form:
- If your tenants move out or plan to move out and if you force them to move out then some providers will cease the payment. No matter you find the new tenant or not they cease your payment anyway.
- Not every policy cover all legal cost in case if you end up in court with the tenant because of the rental agreement.
- If you sell you some policies will stop paying the amount once the property goes on the market for sale and not for finding a new tenant.
- If you rent your place to an unemployed person who doesn’t have any earning source, or to any student then some policy will not cover your rental arrears because insurance companies consider them a major risk. So that’s why your tenant must provide one tenant reference.
- If your provider refuses to accept claims then you won’t be able to cover your unpaid rent.
- In some policies they mentioned that they don’t cover your first month of rental arrear amount.
You must know if you need Rent Guarantee Insurance
With the help of a rental amount, you can cover your mortgage payment. So rental guarantee insurance ensures you that you can rely on rental income. Because most of the landlords rely on rental income to cover the mortgage.
Once you have let your property to the tenant then you can have peace of mind. Because you know you have a legal rent guarantee insurance form.
You should know what the cost of Landlord’s Rent Guarantee Insurance is
The cost of your rent guarantee insurance form will depend on the monthly rental amount which is decided between you and the tenant. For further info click here.