A good rent guarantee product can save you time, money and hassle as a landlord. But beyond the obvious, there are benefits to rent guarantee products that you may not have considered. Let’s see how the different products compare.
What would you do if your tenants failed to pay their rent? Your cashflow would take a hit – and resolving the issue isn’t as straightforward as you might think. Unfortunately it’s not always a given that you will receive your rental income into your bank account at the same time, month after month, without any quibbles.
The good news is that there are rental guarantee products that provide a measure of security against the non-payment of rent. Finding the right product also gives you the freedom and confidence to open your doors to different types of sharers too – such as students or families that receive housing benefit.
Let’s take a look.
What happens if your tenants don’t pay?
Sometimes as a landlord it’s easy to take your rental income for granted. Unfortunately the reality is that sometimes tenants pay late – and occasionally they may not pay at all. Have you considered how you might manage that situation? There’s the time and hassle of chasing your tenant(s). Then there’s potentially the expense and disruption of court action. Meanwhile you need to find a way to plug the hole in your cashflow, which isn’t straightforward if you are financially dependent on your rental income.
Yes, when you work with a local letting agent – such as Belvoir Cambridge – to manage your property the stress is minimised. But the fact remains that the non-payment of rent can cause major disruption to both your finances and your personal life.
Take steps to secure your income
There are a number of products and services out there that can help to ensure you receive your rent on time each month – such as insurance policies. Just be sure to do your research. Not all products are born equal. Some may only cover you up to a certain financial limit. Others may cover missed rental payments but not legal costs. Others still may reject certain types of tenants – such as those who are receiving housing benefit. (Your policy could even become invalid if one of your tenants signs on after they have started their tenancy at your property).
Introducing the Belvoir Guarantee…
The Belvoir Guarantee is an optional service available to all Belvoir landlords. It costs £20 per month, which is astonishing value for what you get – even if we do say so ourselves. Firstly if your tenant defaults on their rent, we will cover the shortfall to ensure you receive your full rental income on the precise day that it’s due – whether your tenants pay or not.
Secondly if your tenant(s) do fail to pay you, we will chase them on your behalf – keeping you in the loop every step of the way. You don’t need to lift a finger. We contact the tenant to ascertain the problem, and if the arrears are not cleared we cover all the legal costs of evicting the tenant via the courts if required. Again, we take care of everything.
The Belvoir Guarantee also gives you more flexibility as a landlord, giving you peace of mind that you can open your doors to different types of tenant. We cover student lets, tenants on housing benefit and most other types of tenancy – just as long as the tenants meet our criteria. We also work with Housing Hand to act as a financial guarantor for overseas students – and as you know there is huge demand for rented accommodation from overseas students in Cambridge.
The Belvoir Guarantee is a service, not an insurance policy
Sounds good? It gets better. The Belvoir Guarantee is not an insurance policy. So if you did make use of the service to cover unpaid rent, there is no excess to pay and you won’t end up forking out for a larger premium each month to preserve your peace of mind.
If you would like to know a little more about the Belvoir Guarantee please feel free to contact me directly to arrange a call or a meeting. Alternatively call the Belvoir Cambridge office on 01223 352225
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Georgina Gray is Belvoir Cambridge’s Branch Manager. With close to 10 years experience of working in the Cambridge property market, Georgina understands all of the unique advantages of this historic city and is passionate about helping vendors and buyers alike. If you’re thinking of selling your home here in Cambridge then give her a call for a free no-obligation valuation.