What is a Rent Warranty?

12th July 2018  |  12:00am

What is a Rent Warranty?

When arranging a new tenancy agreement it is very rare that we don't ask the landlord to consider a rent warranty/guarantee.  With the tax and legislative changes affecting this sector it’s becoming extremely important that landlords attempt to mitigate the financial risk caused by rental void periods.  Even the most referenced tenant can find themselves unable to pay the rent for a period of time, due to unforeseen circumstances.    

We have seen an increase in products/insurances available which enable a landlord to protect their investment/business. They do vary from policy to policy, our recommended policy provider, Blinc Tenant Referencing, offers the following cover:-

Rent Guarantee

•£20,000 or 12 months’ rent (whichever is lower)

•No upper limit on monthly rental amount

•Nil excess cover

•50% of rent paid for up to 2 months after vacant possession is gained

•Property based cover (transferable between tenancies)

•Current references accepted on renewals from previous providers

•Available for 6 or 12 months

•£50,000 legal expenses cover

If you need any further details on this product, or to discuss the management of your property portfolio please contact your nearest branch