LEAVE US YOUR MESSAGE
contact us

Hi! Please leave us your message or call us at 01242 518 441

Thank you! Your submission has been received!

Oops! Something went wrong while submitting the form

7
Apr
Landlords

Guaranteed rent

Marcus Annfield
I
April 7, 2017

Being paid in full and on time is a prerequisite for Landlords. Cashflow, ROI and covering expenses are a crucial element to the day-to-day running of their portfolio. There are some safeguards available to mitigate against lack of rent. It starts with the initial application by the tenant. Taking good references is very important.  We find tenants, vet them and they move in, that’s essentially the plan. We need to check they can afford the rent, have been good tenants before and have a decent credit profile. But life changes, people change too, and the perfect model tenant can morph sometimes in to a completely different person. These occasions are extremely rare, but very important to bear in mind. People stop paying rent for a variety of reasons, but mainly because of life (normally employment) changes.

If you want to consider protecting your income, and/or being able to forecast confidently, you may want to seek some guarantees. There are 2 main routes for this: Rent guarantee and Guaranteed rent.

 

1)      Rent Guarantee

We recommend rent guarantee insurance to our Landlords. This is an insurance product, which pays out to the landlord as soon as the tenant stops paying rent, and covers the landlord for the legal process of eviction. This gives good peace of mind, and is generally cost effective (about £120 per year for a comprehensive package) So a cost at the set-up stage, but full rent (less any management fee if applicable!) from then on.

 

2)      Guaranteed rent

Some agents and investors can guarantee you rent, weather the property is full or empty. There are many decent schemes around, which can be relied upon. Rent to Rent – the most common form, has received mixed press. This is where an individual or a company offers to pay your rent, in full, for 3 – 5 years. This is most common with three bedroom houses, where the investor creates 4 or 5 bedrooms in a house-share situation. As long as you do your due diligence, these can work out well.

There are a few firms, such as Northwood, who guarantee your rent. Where an agent offers to guarantee the rent – they often offer you 60-80% of the rental value, in return for regular, reliable monthly payments. So the choice is yours, insurance or guarantee.

If you need any advice on this topic please get in touch.

e�5Y�

...

Latest posts
19
Sep
Top 5 Landlord Grumbles (and how we fixed them)
I
September 19, 2017

If you have a rental property and use an agent, you will want peace of mind and value for money. Here's the top 5 gripes we have gleaned from our Landlords and how we solve them.

Continue Reading
16
Apr
Business tips
The C word - Collaboration
Helen Richards
I
April 16, 2017

A great deal can be achieved by working together.

Continue Reading
7
Apr
Pet friendly Homes
Renting with pets - a win win for landlords and tenants!
Marcus Annfield
I
April 7, 2017

A high demand for pet friendly homes in Gloucestershire

Continue Reading
easy finder