Something we are consistently asked by landlords is, 'do I actually need Rent Guarantee for my properties?' In short, the answer is yes.
We live in a fast-changing world where you need to put in measures to protect your investment. The easiest way to do this when it comes to protecting your rental income is by having a rent guarantee policy in place. Unfortunately, as a landlord, you can sometimes find yourself in a situation where a tenant stops paying rent. This is sometimes done intentionally by a tenant or sometimes by no fault of the tenant, such as job loss.
With the current cost of living crisis and rents soaring, tenants are finding it harder to make ends meet. As a landlord looking to protect your investment, you need to put in place a ‘safety net’ covering any unpaid rent and legal costs (if required). Rent Guarantee is a service that we provide for our Managed & Rent Collection clients; let me know if you would like to know more about this service. Rent Guarantee is something the majority of landlord insurance providers will also provide, so it is worth looking into this also.
Statistically, a letting agent is 272% more effective at keeping a landlord away from arrears of two months or more than if a landlord looked after the management of the tenancy themselves.* Couple this statistic with a landlord not having an effective Rent Guarantee policy in place, and the risk is huge.
To summarise, regardless of whether you are a current landlord looking after your own portfolio, employing an agent to manage the properties, or a future landlord beginning the journey, I would have a Rent Guarantee policy at the forefront of your mind. Give me a call on 0161 442 1118 or email Jordanamcvarnock@julianwadden.co.uk for further assistance on this.
*Statistic provided by Christopher Watkin, property journalist.