If your tenant is not paying their rent, the chances are you’ll want the tenant to leave. Evicting a tenant can be a lengthy and costly process. In addition to rent arrears, the amount of money lost can soon make a big impact on your overall finances. Coupled with how much time it will take to evict a tenant, it can be extremely frustrating. Rent guarantee insurance covers eviction fees. As long as the tenant is occupying the property, the insurers have to pay any rent arrears. As a result, it’s in the insurer’s interest to evict the tenant as soon as possible, so that they minimise the amount of money they’ll have to pay out. If you don’t have rent guarantee insurance, then you would have to pay for court fees, bailiff fees and legal fees, all whilst you’re receiving no rent from your property.

The rent guarantee cover that we offer also covers legal fees in addition to the above. Solicitors will attend court hearings if needed and will also send the relevant paperwork to the courts regarding the eviction. Having legal help is a must, especially if you want a smooth sailing eviction process. We’ve come across a number of landlords who aim to do this themselves and soon find that they’ll need professional help. Trying to evict a tenant without any prior knowledge or the right credentials can often result in losing the case, which means you’ll also have to pay the tenants legal costs!

Knowing that your rent is guaranteed to be paid has more than just a financial benefit. Rent guarantee insurance can also give landlords time to manage other aspects of their life, including further investments to add to their portfolio. Chasing tenants for rent and then trying to evict them can take a lot of time and cause unnecessary stress. This can all be avoided with rent guarantee insurance. If you are a landlord and have had a tenant that’s fallen behind with their rent or a stubborn tenant that’s not willing to leave, then you’ll understand how frustrating and stressful this situation can be.

Not having rent arrears, will result in having more funds and should keep your investment at a positive cash flow. The funds can then be used to expand your portfolio or spent on the upkeep of your investments. If your investments aren’t making money, they then become liabilities. A lot of landlords aim to snowball their investments. For example, using the income and profit from investments to expand their portfolios so it becomes a self-funding venture.