Guarantee your rental income – don’t be the victim, let Van Mildert help.
Landlords in the UK are out of pocket to the tune of over 5bn every year as a result of damage to property and unpaid rent.
Van Mildert are delighted to be able to offer peace of mind to help you secure your investment by providing you with rent guarantee insurance.
The most important points are outlined below:
If you’re a landlord then you’re probably well aware of the fact that every tenant can seem completely fine on paper but can, unfortunately, become unable to pay the rent. Although the referencing process is extremely thorough and robust, it is impossible to predict how a tenant’s circumstances may change during the tenancy. An unexpected illness, breakdown in relationship, redundancy or some other serious circumstance which may unfold without warning will likely impair the tenant’s ability to meet their rental obligations.
Even the most reliable of tenants can find their financial position changing drastically through no fault of their own, which can in turn compromise their ability to pay the rent on time and in full. This is where rent guarantee insurance can provide the necessary peace of mind to ensure that your investment is protected.
Rent guarantee is absolutely essential in the event that your tenant falls into financial hardship. Without insurance, your income and mortgage could be at risk. Here at Van Mildert, we provide a range of ‘Rent Guarantee and Legal Expenses’ insurance policies to help mitigate these risks and protect you against any unforeseen events which may occur.
The Rent Guarantee element of this insurance policy is very simple — if the tenant fails to pay their rent for any reason then the insurance policy will pay you the rent instead.
The Legal Expenses element of the policy provides additional cover in that, in the event of a tenant refusing to leave a property, it covers all of the legal costs associated with formally evicting them.
This comprehensive insurance is available exclusively to landlords who have fully referenced their tenants through Van Mildert.
Rent guarantee insurance is an insurance policy that simply protects you as a landlord from the risk of tenants not paying their rent. If your tenant can no longer pay their rent and if you have a rent guarantee policy then you can claim on your monthly rental income and the insurer will pay the rent that you’re missing out on. Many landlords think that their rent is covered with landlord insurance, however, landlord insurance only covers things like building and contents, most of which don’t have clauses about covering losses of rental income. In short, rent guarantee insurance does exactly what it says on the tin – your rental income is guaranteed to be paid, no matter what happens.
Being a landlord is a stressful job, and feeling like you’re constantly worrying about your tenant’s rent being paid on time can make the relationship with your tenant feel pressured. As your income is guaranteed either way you will naturally stress less about this issue. Although you may be a landlord reading this thinking you have the most reliable tenant ever and they have never missed a rent payment. This doesn’t mean to say that their current job position falls through or that they, unfortunately, become unable to work due to no fault of their own and therefore, unable to pay their rent. Our rent guarantee insurance policies also cover the cost of having to evict the tenant, potentially saving you well in excess of £1000. Whether you’re a full-time landlord or have a second property as an investment, there is nothing worse than adding extra stress as to whether the rent will be paid on time, or the state your property could be left in. Rent guarantee insurance aims to provide additional assurances to you as a landlord, safe in the knowledge that your rent is not under threat, regardless of the unfortunate circumstance your tenant may fall into.
Any landlord with an occupied property can purchase a rent guarantee insurance policy, there are just a few requirements that need to be met first:
In the event of a claim, the landlord should be able to provide evidence of all of the above as it is the landlord’s responsibility to keep hold of these documents and any other proof asked for when signing the rent guarantee policy.
You will be covered for rent arrears owed by the tenant during the tenancy agreement until vacant possession is obtained, and you will be covered for legal expenses and advisers’ costs in relation to evicting the tenant(s) in the event that they violate the tenancy agreement.
Rent will be paid up to a maximum of £8,333 per month and legal expenses up to a maximum of £50,000.
In the event of the tenant breaching the tenancy agreement or falling into arrears exceeding one full months’ rent, you should contact us on 0191 256 0920 to begin proceedings and file a claim.
Only tenants who have passed our comprehensive reference qualify for a rent guarantee. By referencing them first we have most of the details we need already on file, making the ordering process even easier for you.
Van Mildert provide specialist landlord and tenant protection services primarily in the form of tenant referencing services and rent guarantees, as well as contents insurance for both landlords and tenants. With a wealth of knowledge and expertise, we aim to assist our clients and service their needs be it with tenant referencing, automated compliance or rental guarantees. We have compiled a comprehensive range of services and one that is fully integrated into all the UK’s major lettings software.
If you would like to order rent guarantee insurance, do not hesitate to contact us on 0191 256 0920, one of our advisors would be able to help you with your enquiry and provide you with any more addition you may require. Similarly, if you are interested in any of the other services that we have on offer here at Van Mildert, then contact us for further information or expertise from one of our advisors. We would love to hear from you!