Even with careful tenant referencing, rent arrears can happen. Rent guarantee protection provides landlords with security and peace of mind.
What is Rent Guarantee Insurance?
Rent guarantee insurance (RGI) covers landlords if tenants stop paying rent. Policies usually include:
- Monthly rent payments for up to 12 months
- Legal expenses for eviction proceedings
- Court costs
Benefits
- Protects cash flow
- Reduces stress during disputes
- Ensures mortgage payments can be met
Conditions
Most insurers require thorough tenant referencing before offering cover.
Alternatives
Some letting agents offer in-house rent guarantee schemes, often combined with full management packages.
Conclusion
Rent guarantee protection is an investment in financial stability.
Download our free landlord checklist to see how rent guarantee cover fits into a wider compliance plan.