Guaranteed rental schemes allow landlords to hand over the management of their property to a company or real estate agent in exchange for a pre-agreed payment. In these cases, the landlord will get paid even if the property is empty or the tenant does not pay the rent. We have set out the reasons why rent guarantee is a hot topic at the moment. However, it is always an issue.
One of the best ways to "guarantee rent, is to do the groundwork and research to ensure that a property will have a reliable rental role. While there is no guarantee that a tenant will pay, there are steps that rental property investors take to minimise risk. There are two main ways to hedge your bets to ensure that the rental is reliable. The first is the proper selection of tenants.
There are still some tools that landlords can employ to screen tenants. For example, an applicant's employment can still be verified. Credit checks can still be performed and a minimum employment credit rating can still be required. Thus, a landlord could be forced to pay a large amount of money up front in exchange for a guaranteed rent.
Buying rent guarantee insurance, like buying any other type of insurance, is about protecting your property and your investments. Just because a landlord has rent guarantee insurance does not mean that the tenant gets a free pass on the rent. Far from guaranteeing rent, both the federal and local governments are teaming up to take rent away from landlords through what appear to be unconstitutional new laws. The problem, of course, is that residential real estate costs money to maintain, so when a landlord does not collect rental income, cash flow problems can arise.
The partnership with Steady will provide Avail landlords across the country with rent reimbursement options in the event a tenant stops paying rent, and will add to Avail's already comprehensive platform of property management and DIY tools. Landlord insurance allows you to protect your building from environmental damage while protecting yourself from liability; tenant insurance allows tenants to protect their belongings in the unit. While the screening tools offered by Avail help landlords select quality tenants who will pay their rent on time each month, even the best screening cannot guarantee that certain life changes will not occur after a tenant moves out, such as a loss of income, divorce or medical emergency. Residential towers) for sale and offer potential investors a guaranteed return on investment through rental guarantee insurance.
Sometimes, the investor does not even get the full rental guarantee, which is only as good as the company behind it. For many property investors, a rental guarantee (from a developer or marketer for a certain period) may sound very attractive. This insurance is made to cover the base rent, without any other charges, for a limited period after a tenant stops paying rent. To us, guaranteed rent means what it says: a guarantee that the landlord will collect the rent due.
In most cases, a claim can be filed as soon as the tenant has shown that he or she will not pay the rent or has not paid the rent even after you have sent an official notice.