With the average asking price for a property in London reported to be a record £644,045, insurers are urging landlords inside the M25 to ensure their buy-to-let investments have adequate cover.
The concept of landlord insurance policies are clear. These include buildings and contents, liability cover, emergency assistance and legal cover that pays out if the property owner needs to take tenants to court to evict them.
But there is equally clear uncertainty about the difference between rent guarantee insurance and a rent guarantee scheme.
It’s easy to understand why confusion reigns among accidental landlords (homeowners who find themselves with a property surplus to their requirements), first-time buy-to-let investors and even experienced landlords.
The two terms have similar names, but totally different meanings.
Rent Guarantee Insurance
This type of policy is designed to protect a landlord’s income against tenants in arrears and deliberate defaulters.
Many companies that offer these policies claim that a landlord’s worst nightmare is a tenant who can’t – or won’t – pay the rent.
They often cover up to £50,000 of rent arrears plus legal expenses up to a similar amount. Some policies even come with no excess to pay in the event of a claim.
But they do not cover void periods – when a residential investment property remains empty while a landlord still has to pick up the bills for their buy-to-let mortgage and other property maintenance costs.
Nor will rent guarantee insurance policies reimburse a hard-working landlord for the time and other costs involved chasing rent arrears.
There is a way around this threat to a landlord’s income.
Rent Guarantee Scheme
The Rent Guarantee Scheme offered by Denhan International, on the other hand, offers every landlord with a property inside the M25 complete peace of mind for up to 60 months.
With the average rent in London now over £1100 per month, that could mean a guaranteed income of £66,000 over the next five years.
Our five-year Rent Guarantee Scheme takes away all of the stress of being a landlord.
We will first arrange a meeting with you and place a rental value on your property.
After agreeing the monthly rental income based on the current market rate for a particular area, we will set a handover date when after taking possession of your property’s keys we will assume full responsibility for it.
We have a huge database of prospective tenants who are looking for a property to rent just like yours. We will market your property and find you a suitable tenant.
But before finalising the tenancy agreement, we carefully vet anyone who will be moving into your property and take up all references.
As an extra precaution, we may also ask the potential tenant to provide details of a guarantor.
We will then make an inventory of the property, with photographic evidence, before asking you to provide proof of the following…
- Building insurance
- Gas safety check
- NICEIC electricity safety check
- Smoke alarms
After taking a security deposit – and complying with regulations requiring us to place those funds with an approved government scheme – Denhan will then collect and pay you your rent via an automated BACS system, straight into your bank account.
We will take care of any issues that might arise and send a member of our dedicated team to your property each month to ensure it remains in tip-top condition.
The Denhan Rent Guarantee Scheme is the ideal way to see your rental property earn money for you, while taking all of the work out of your hands.
For more information about our Rent Guarantee scheme or other services Denhan offers landlords within the M25, get in touch with us today.