So you’ve decided that you want to take out Rent Protection Insurance to safeguard the cash flow from your rental property. But there are so many different insurance products available – how do you know which one to choose?! And how can you make sure you get the best value for money?
If you want to get even more bang for your buck, then you might want to look at some package options that include rent protection insurance as part of the service. When rent guarantee insurance is packaged with other products, for example as an add-on for landlords building insurance, or as part of a rent collection service, the cost can work out significantly lower than purchasing a stand-alone rent protection insurance policy.
One of the most attractive packages we’ve found is the RentScore Plus rent collection service which includes TheHouseShop’s Rent Protection Insurance as standard. RentScore plus totally removes the hassle of rent collection and chasing late payments, while also safeguarding your rental income in the event that the tenant can’t pay.
What Does Rent Protection Insurance Include?
The Rent Protection Insurance that comes bundled within the RentScore Plus service is one of the most affordable and comprehensive products we’ve found on the market when it comes to safeguarding your rental income and providing cover for all the associated costs that come from tenant default. At the bare minimum, any good rent guarantee or rent protection insurance cover should offer you coverage for the full rental amount (whether it be £500 or £5,000 per month) in the case that you tenant can’t or won’t pay.
On top of basic unpaid rent cover, most insurance policies will also provide some kind of legal expenses cover to help you recoup the costs of going through the courts to seek eviction. In some cases this legal expenses cover can also be used for other disputes, such as disputes over malicious damage to the property. TheHouseShop’s Rent Protection Insurance offers legal expenses cover of up to £100,000 per claim – more than enough to cover the costs of an eviction.
More comprehensive insurance policies will also provide at least partial rent cover for a fixed period of time after your tenants have successfully been evicted, to allow you the time to find new tenants without losing out on any more cash! TheHouseShop will pay 75% of the rent for 2 months post-eviction, which is one of the better offers we have been able to find in the market.
Finally, some rent protection insurance providers will also give you access to a free legal advice helpline. This can be an invaluable resource for landlords and can help you avoid countless hours of wasted time, stress and money. Being able to speak to a qualified expert with adetailed knowledge of property and lettings law, free of charge, can be incredibly reassuring when you run into trouble with your tenancy. Especially when you realise that you would normally have to pay hundreds of pounds to access expert legal advice without this cover.
How to Make Sure Your Tenants Pay on Time
Reporting Tenants Rent Payments to Experian with RentScore Plus
The icing on the cake with the RentScore Plus service is that tenant’s rental payments are automatically reported to leading credit ratings agency Experian, and are reflected on the tenant’s credit histories. This means that tenants risk damaging their credit scores if they pay late or miss a payment, and makes rent payments just as much of a priority as utility bills or credit card payments which already affect a tenant’s credit file. On the flip-side – good tenants who reliably pay their rent on time each and every month are rewarded with a boost to their credit histories and enjoy the same benefits as mortgage holders for making prompt payments.
Landlords can take up the RentScore Plus service for as little as £19.99 per month – which works out much cheaper than signing up for a rent collection service and rental protection insurance policy separately.
On top of handling rent collection for you and registering tenant’s rental payments with Experian, there are a number of other benefits to taking up the RentScore Plus service. RentScore sets up Direct Debit payments for your tenants, which is the most reliable payment transfer method available. Unlike with a Standing Order, the RentScore Plus team will be notified as soon as your tenant cancels their Direct Debit rent payment, so they can proactively chase the tenant and ensure that they make alternative arrangements or re-setup the Direct Debit transfer.
RentScore Plus also creates automatic reminder emails and SMS messages to keep both you and your tenants informed. It may seem simple, but it’s amazing how much difference a polite reminder can make when trying to make sure your tenants pay their rent on time.
Finally, the RentScore Plus service also covers you for legal expenses, eviction costs and provides access to a free legal advice helpline so you can talk to a professional about any potential disputes before you jump in at the deep end and go straight through the courts.
You can find out more about the RentScore Plus service here: