Failed rent payment is a rising problem for landlords; more and more tenants are finding themselves able to leave properties they have rented without paying what they owe. Some, who find themselves in financial difficulties, will remain living in the property whilst making their rent payments late – or not paying them at all. It is often hard to evict them if they refuse to leave; the last thing you want to do is put yourself in potential danger if your tenant does this.
Thankfully, there is a way to protect against loss of rent. Rent guarantee insurance is provided by a number of insurance companies. It will protect you financially if, for whatever reason, you lose your rent. If you are currently letting out a property, or you have a portfolio of properties, it is highly recommended you take out rent guarantee insurance.
In most cases, the insurance will help when a tenant leaves your property without paying their rent. You will be able to claim what they owe on your insurance. Of course, you should still contact the police, as your former tenant has committed an illegal offence.
If you would like to evict your tenant (and they refuse, for whatever reason, to leave) your insurance will cover any legal costs. In many cases, it is necessary for landlords to take legal action. You definitely shouldn’t try to evict them by force, even though their actions are wrong – you could find yourself in trouble with the police, or get physically hurt yourself. Some insurance companies will pay your rental rate until you find a new tenant.
When looking for landlords rent guarantee insurance, make sure you carefully check what the policy includes. Ideally, you should opt for cover that protects you in a variety of common problematic situations.