Are rent guarantee schemes worth it?
It’s not easy to give a definitive answer to this question, as there is hardly any transparent pricing information when it comes to guaranteed rental arrangements. The value proposition of guaranteed rental arrangements can be particularly tempting for landlords who already have experience with payment arrears and evictions. For an example of a guaranteed rental system from the local authority, see the details of the Lewisham program here. Similar to private mortgage insurance (PMI), rental guarantee insurance offers protection to the landlord and not the tenant.
Similar to private mortgage insurance (PMI), rental guarantee insurance offers protection to the landlord and not the tenant. Companies have limited liability, and many agents and services that offer guaranteed rental arrangements are small businesses or individual investors with little financial support.
What is a guaranteed rent?
As a rule, the product maintains the duration of individual leases with a premium of between 6-12% of the monthly rent. We operate guaranteed rental arrangements throughout London and the South East, where there is a high demand for real estate. Rental rental programs, guaranteed rent, guaranteed rental systems or guaranteed rental services; the one term that is not covered by this far-reaching roof is rental guarantee insurance. The middle tenant is also responsible for reclaiming payment arrears and regaining the free ownership of his subtenant.
If you don’t confirm with the relevant providers that you have permission to use a guaranteed rental system to rent out your property, it’s very easy to get into a lot of trouble later on.