How Rent Guarantee Works and Why Landlords Shouldn't Go Without It

What Is Rent Guarantee Insurance?

Rent Guarantee Insurance is a policy designed to protect landlords against loss of rental income if a tenant fails to pay. Depending on the provider and level of cover, it can include:

• Missed rent (usually up to 12 months of payments)

• Legal expenses for eviction proceedings

• Continued rent payments during the possession process

• Cover for disputes over damage or breaches of tenancy

At Hodsons, we offer Rent Guarantee as part of our fully managed lettings service, giving landlords confidence that their income is protected.

How Does It Work?

Here’s a step-by-step breakdown of how rent guarantee typically works:

1. Tenant Referencing
   The policy is only valid if your tenants have passed professional referencing checks. That’s why choosing the right lettings agent is essential. We ensure every applicant is properly vetted.

2. Rent Collection
   If a tenant falls behind, you’ll usually have to wait one full month before the claim can be submitted. Once the insurer accepts the claim, rent is paid to you (usually monthly) until the issue is resolved or the limit is reached.

3. Eviction Support
   If the situation escalates, your insurer may also cover the legal costs involved in regaining possession of your property.

4. No Excess (with some policies)
   Some rent guarantee policies don’t charge an excess, meaning you get paid from the first missed payment.

Why Should Landlords Have It?

Even with great tenants, circumstances can change unexpectedly. Here's why rent guarantee is a smart move:

1. Protection From Financial Loss

A few months of missed rent can wipe out your profits for the year. Rent Guarantee ensures you’re not left out of pocket.

2. Legal Backup When You Need It Most

Evictions can be costly and stressful. Rent Guarantee often includes legal expenses cover, saving you thousands.

3. Peace of Mind in an Uncertain Market

With the cost-of-living pressures and new rental legislation in motion, landlords need security more than ever.

4. Stronger Portfolio Management

Having Rent Guarantee in place allows landlords to make financial decisions with greater confidence, whether you own one property or ten.

Is Rent Guarantee Worth It?

In our view, yes. The cost of a good Rent Guarantee policy is a fraction of what you could lose in unpaid rent or legal bills. It’s a layer of protection that can save you time, money, and stress.

At Hodsons Estate Agents, we offer rent guarantee cover as part of our management packages, ensuring our landlords are looked after even when things don’t go to plan.

Want to Know More?

If you’d like to explore Rent Guarantee cover for your property, get in touch with our lettings team today. We’ll talk you through how it works, what it covers, and how we can help you stay protected.