Rent Guarantee Insurance | UK Rent Guarantee for Landlords

Private Landlords need to be assured rent will be paid. Unfortunately, there are occasions when the rent is not paid, and we get into legal dispute with our tenants. This can inflict serious damage on our cashflow, and as such must be avoided at all costs.

Rent Guarantee acts exactly as it says. An insurance premium is paid by the landlord, and if the tenant then fails to pay the rent, the insurance cover will kick in to protect us from bad debts from tenants in your portfolio. 

Some of the schemes even offer legal expenses cover to obtain possession of your property in the event of payments not being paid.

Why purchase Rent Guarantee Insurance?

As landlords, the decision to purchase rent guarantee depends on:

  • How you view and manage risk. The cost is minimal and if you have a defaulting tenant, the cover is very valuable.
  • The credit check of your tenant (most rent guarantee products require a tenant reference), but remember, even good tenants can become bad ones.
  • Your ability to pay any buy-to-let mortgage when your tenants do not pay.

Landlords need secure income to make a business work. If the income stream is disrupted in any way, this can lead to very serious consequences to your business, cashflow and future purchasing power. The rent guarantee is the best way to avoid this.