How to rent with complete peace of mind
Renting out your property can be great, especially when you have a tenant that respects your property. However, in a small number of occasions this is not always the case. As a landlord, there’s one thing you may dread and that’s the tenant from hell. Whilst the vast majority of tenants cause no problems and will treat your property with respect; it is an inherent risk of being a landlord that you may come across a nightmare tenant.
Challenging tenants can arise for a number of different reasons, be it financial or problematic. When a tenant simply fails to pay, be it out of malevolence, financial incompetence or a sudden change for the worse in their financial circumstances they may not tell their landlord about it. Landlords without a rent guarantee insurance policy may be in for a shock if this situation arises.
Rent Guarantees are designed to provide comprehensive cover to landlords in the unfortunate circumstance that any of the above issues arise. Sometimes these issues cannot be picked up when vetting your potential new tenants no matter how many references you check and verify incomes; sometimes their personal situation can change quick and dramatically.
Without Rent Guarantee with Eviction cover, the cost of evicting a problem tenant from your property costs on average £1500 as well as up to 12 months missed rental payment (depending on how long the case goes on for). This is a costly fee that most landlords could do with avoiding. Plus without rent guarantee you cannot be certain that you’ll even receive the missed rent or the cost to replace any damages to the property.
Rent Guarantee, how does it work?
One of the great benefits of having Legal Expenses and Rent Guarantee insurance in place is that busy landlords and investors do not have to chase up tenants. Lengthy court cases take up your time, energy and stifle cash flow. Your insurance can cover the legal costs and help reduce the process.
The main benefits of Rent Guarantee are:
- Decreases the risk of cash flow due to non-payment of rents from the tenants.
- Gives landlords the peace of mind that any issue with non-payment of rents will be handled by an expert legal company or insurer.
- Brings a level of formality in the relationship by which the tenant understands that non-payment of rents can lead to serious circumstances and there is no room for any emotional manoeuvres.
- With the Rent Protection on Rent Guarantee policy, all the hassle factor is taken on by the insurer and hence the landlord’s do not get sucked into solving this problem singularly.
- If the tenants do not leave the property at the end of the tenancy and effectively squat, the landlord is left with no agreement and legal proceedings can be very messy. Rent Protection or a Rent Guarantee policy usually covers such scenarios.
- The landlord gets covered not only for the loss of rent but also for all the legal costs to evict the tenants and thus saves landlords from expensive legal fees.
Here at Open House Estate Agents Leicester we don’t just find you a tenant, we also a comprehensive Rent giving landlords peace of mind that should something go wrong, we are here to carry out a free of charge eviction and ensure that you receive all money you are owed. At Open House Leicester free tenant eviction is offered with all Rent Guarantee covers for landlords who use our fully managed lettings service; meaning that we can take the hassle out of everything.
It is important to protect your investment and make sure that the time and money you have invested into your property is not wasted. Talk to one of our property consultants today to find out how you can protect your property with Open House Leicester.