What we do at Bluestoneletts

Rent guarantee is a form of insurance where, for a relatively small annual fee, landlords can protect against loss of rent. Normally, ‘Landlord Rent Guarantee Insurance’ is combined with ‘Legal Assistance Insurance’ whereby a landlord’s legal costs of recovering rent and/or evicting a non-paying tenant are covered.
Generally, the insurance payout starts only after one month. It is usually a condition of such policies that landlords ensure their tenants are professionally credit-checked before handing over keys. This product was traditionally offered in the UK and has now expanded to the USA with players such as Lloyd’s of London backing companies for the last 3 years.
Rent guarantee is a very useful form of insurance, particularly where landlords let their property without a letting agent, as the necessary checks involved actually tend to deter rogue tenants who would otherwise gravitate towards properties being let privately.
All companies underwriting such policies in the United Kingdom must be registered by the Financial Services Authority.
Rent Guarantee insurance is different from a Guaranteed Rent scheme, which is a service that manages a residential property in return for a fixed portion of the rent. The owner is paid his share, even if the property is empty or tenants default on the rent: in that sense, it functions as a form of insurance.


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