If you’re a landlord, the rental income you receive from tenants is non-negotiable, especially once they’ve entered into the tenancy agreement. So, when your tenants cannot find money for rent, what are you meant to do?

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With rent guarantee insurance, you won’t have to worry about lost rent because well… the rent is guaranteed!

What is landlord rent guarantee insurance?

Rent guarantee insurance is a type of landlord insurance that protects landlords against a loss of income if their tenant fails to pay their rent. It covers rent arrears and can pay towards legal costs if you have to take legal action against the tenant.

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Why do I need rent guarantee insurance?

Anybody can experience financial difficulties, no matter how reliable your 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. 

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With rent guarantee insurance, the lost costs are legally covered and your rent income is guaranteed.

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Having a guaranteed rent insurance policy ultimately protects you as a landlord from losing your rental property income. Knowing you have the insurance preserves your peace of mind.

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How does rent guarantee insurance work?

Rent guarantee insurance offers a range of cover:

• Lost rent - Depending on your policy, the insurance will cover a percentage of rental payments for a certain duration of time, up to 12 months.
• Legal expenses cover - This means that if you require legal defence or have to evict the tenant, the money you need for this is covered.
• Rent lost from repairing the property due to damage - If the property cannot be immediately re-let due to damage, some policies offer to cover the rent until it is re-livable.

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What is a guaranteed rent scheme? How is it different from rent guarantee insurance?

A guaranteed rent scheme is slightly different to insurance. With a guaranteed rent scheme, the landlord signs over their 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.

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The landlord has no direct relationship with the tenant, but the external agent does.

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The schemes therefore guarantee rental income but require the landlord to not be involved in property affairs. Opting for rent guarantee insurance would be a more appropriate option if you’re a landlord who enjoys overseeing your own affairs.

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But, what the scheme and insurance have in common is that rent is guaranteed no matter the tenant’s circumstances. It’s something to consider!

Do I need rent guarantee insurance?

If you’re a landlord of one - or ten - rental properties, it’s in your best interest to have rent guarantee insurance.

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With guaranteed rent services, your income is protected, as well as any additional costs that unexpectedly arise. Even if your tenants have financial stability, it’s easy to end up in unforeseen financial situations but rent guarantee insurance will cover you!

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How Lets Insure can help

Lets Insure is an experienced provider of 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.

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If you’re a landlord who’s considering investing in Rent Guarantee Insurance, 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!  

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