Guaranteed rent services are for private landlords who rent out their properties. Being a landlord is not as easy as it may seem, and that’s why so many landlords use letting agencies to assist in renting their properties. 

Landlord insurance is a great thing to have because it ensures you have peace of mind about your property and the tenants living in it.

What is guaranteed rent insurance?

Rent guarantee insurance protects landlords against a loss of income if their tenant fails to pay their rent. Anybody can experience financial difficulties, no matter how reliable the tenants might be. Whether it’s a lost job, relationship breakdown, or other changes in their personal circumstances, these factors can affect your tenant’s ability to pay their rent. 

However, just because the tenants cannot pay rent does not mean that the landlord must suffer the consequences of this too.

Rent guarantee insurance covers rent arrears and lost income and can pay towards legal costs if legal action has to be taken against the tenant.

How do guaranteed rent schemes work?

If you opt into a guaranteed rent scheme, you (the landlord) sign over your rental property to an external company, agency, or individual. They are then responsible for your property management in exchange for you receiving a guaranteed monthly income - regardless of whether the tenants cannot pay the rent or if the property is empty.

The landlord has no direct relationship with the tenant, but the external agent does, including property maintenance and repairs!

Benefits of Guaranteed Rent Insurance Schemes

• You are consistently and regularly paid—even if your tenants fail to pay their rent or are late with a payment, you will still be paid your fixed monthly income on time. You can expect a reliable income every month!

• You don’t have to personally deal with the tenants - the guaranteed rental agency will handle most maintenance and tenant issues surrounding your property.

• It’s a refreshing, new way to rent out your property - you are guaranteed to receive your monthly income but with less hassle from dealing with tenants. They are not your stress, but the agency’s!

• You are still paid throughout empty tenancy periods - if your property is empty whilst you are waiting for a new tenant to move in, the management company will still pay you your rental income. There are no void periods!

• There is less of a chance of evicting the tenant - without insurance, you would stop receiving rental income if the tenant failed to pay. This would be a case for legal eviction proceedings. However with insurance, you can still proceed because you will receive your fixed monthly income no matter what.

• The management company will likely be good at finding reliable tenants.

• You can relax knowing that you will be paid, repairs will be made, and the tenants are not your responsibility.

Is guaranteed rent insurance worth it?

There are many advantages to guaranteed rent. If you want to ensure you have a monthly rental income with less involvement with the tenants, guaranteed rent insurance is entirely worth it.

The insurance protects your investment in the property and secures your income. It will give you peace of mind regarding your property, and you can relax while the insurance agency handles things for you.

How LetsInsure Can Help

At LetsInsure, we specialise in Rent Guarantee Insurance, Home Emergency Assistance, and Deposit Replacement Insurance. With professionalism and expertise like no other, we offer personalised protection and compliance for landlords all across the UK.

If you’re considering investing in Rent Guarantee Insurance, we should be your first choice. We understand the ins and outs of being a landlord and are here to tailor our insurance to your needs and requirements. 

You can sign up to our services for free or contact us with any questions you may have and we will be happy to help!