As a HMO Property Management and Serviced Accommodation company in Chester, North Wales and the surrounding areas, we pride ourselves on being able to deliver exactly what we say. One of those promises is guaranteed rent to our Rent to Rent landlords.
What is Rent to Rent?
Rent to Rent has become an industry buzz term meaning authorised subletting. A person or company would approach a landlord, ask to be their tenant, provide full rent and care of the property and then rent the property to their own tenants. The house would become a House of Multiple Occupancy (HMO) and the person or company renting it would take over the day to day running of the property.
Contracts are exchanged between the landlord and the original tenant/company guaranteeing the rent. The tenant/company handles the legal obligation to turn the property into a HMO and guarantees that the property will be returned to the landlord in the same, or better condition than when it was let out.
A lot of landlords are understandably cautious about handing over their property to a company to rent out and turn into a HMO as things can go wrong possibly resulting in not being paid rent for several months.
Here at Baytree Property Limited we use a guaranteed rent insurance product.
What is rent guarantee insurance?
Rent guarantee insurance is designed to cover monthly rental income if a tenant doesn’t pay. The landlord/managing agent can make a claim against the rent guarantee insurance if the tenant is more than 30 days behind in rent payments.
Rent guarantee cover allows you to claim for a fixed term, normally 12 months. Within that period, the managing agent organises to have the tenant paying rent again, have the tenant leave the property of their own accord or start eviction proceedings.
What does rent guarantee insurance cover?
Rent guarantee insurance covers the monthly rent payments a tenant has stopped paying. Insurance polices differ, however, they all have the same basis;
· Limit per claim – between £50,000 and £250,000
· Lost rent coving anywhere from 12 months upwards
· Legal expenses covered
Here at Baytree Property Limited, we pay the insurance premium and pay the landlord rent from the point the keys are handed over. Our contracts include a break clause so you have the flexibility to asses our HMO or Holiday Let management service.
Why does Baytree Property need rent guarantee insurance?
We want our landlords to have peace of mind and we take the success of relationships very seriously.
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