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Rent Guarantee Insurance


JMK

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Just a quick question (may be a stupid one!) Does anyone take out Rent Guarantee Insurance?

As some of you will know I got badly 'bitten' by my last tenants ie: doing a runner owing over 3 months rent and they also trashed the house.

I have finally fixed up the house and found some more tenants (I know it has taken forever!!!). The prospective tenants seem lovely - but I fell for that one before.

I have run an online credit check on both of them, they both come up with no ccj's etc and he had a 'pass' but she has not been working for the last 18months due to the fact that they have a little boy and as a result came up as 'fail'.

Is it worth taking our rent insurance or should I just keep very on top of the situation this time around?!

Regards

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They may be the nicest tenants in the world with full intention to pay you but who's to say he won't lose his job next week and then be unable to pay you the rent regardless.

There has certainly be a rise in rent guarantee insurance claims recently which can only be due to the economic problems. Consequently, more and more landlords are taking out the cover.

I think it all boils down to each landlord's individual circumstances and you need to look at the factors involved like the cost of the insurance, whether the rent is essential (i.e. mortgage payments) and of course the tenants.

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The last contributor sums it up for me when he says they have 'had loads more claims'. He does not say how many were paid out. Note how these firms all have 0870 numbers for you to ring so they can make further gains out of your misery. Insurance companies are not in business to pay out for your mistakes but they are keen to take your money with soothing reassurances at the outset.

I suggest you have a go yourself - apart from credit checks look a the person's employment record and check it out with the company they work for. After all it is these wages that will be paying your rent. A steady long term employee comes high on my list. If the tenants are young get an adult to stand as guarantor. I think it was Reg a couple of months back on this site set out a list of requirements he was looking for in a reply to someone else with tenant finding problems - check it out and learn how to do it yourself. Make a check list and go through it meticulously and follow up references.

You can't expect an insurance company to be respnsible for your mistakes so get sharp and be self reliant. You probably need a bit of confidence building after the last fiasco. We've all been there!

Good Luck,

Mortitia

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