UK Guaranteed Rent Explained
First of all, UK guaranteed rent explained in a way that makes sense is important for Landlords to understand.
Metropolitan and Crown has been a provider of guaranteed rent in London and the M25 radius since 2007.
Therefore, we understand the guaranteed rent market and the variables offered by the many estate agents in the UK.
Landlords must ask the agent how they will be guaranteeing their rent before they proceed.
They might find that their rent will be guaranteed by way of a rent guarantee insurance policy.
The landlord will not be guaranteed the rent when something goes wrong.
If you have ever dealt with an insurance claim, when they might be completed is like asking the question;
“How long is a piece of string?” It could take an indefinite amount of time to complete… if the claim is approved.
It is important for all landlords to do their “due diligence”.
Ask the right questions before entertaining any estate agent that offers guaranteed rent.
Questions to ask could be;
1.) How is your company guaranteeing the rent?
2.) Does the guaranteed rent scheme cover void periods?
3.) Can your company afford to guarantee the rent if something goes wrong?
4.) What is the minimum term of the contract for your guaranteed rent scheme?
If a company is guaranteeing the rent by an insurance policy, there is no point in asking questions 2 and 3.
Consequently, the insurance policy will only cover you for any setbacks created by sitting tenants who have defaulted on their rent.
It is still worth asking question 4 to see how long you will be tied into the agents contract.
To conclude, as a landlord, it is important to find out what type of guaranteed rent an agent is offering, and carrying out your due diligence before letting out your property.
We will continue to post relevant information about guaranteed rent in the future.
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