Extremely rigorous tenant screening, insurance and total protection?

There will always be some latent risk regardless of the mitigation measures you set in place. Mitigation comes at a cost.

Insurers exist to make money.

If the risks, including non-payment of rent, are unbearable, maybe the PRS isn’t a suitable investment for you. Perhaps bonds would be more appropriate.

Hi Tony

We do not sell Rent Guarantee Insurance as we have deemed it a worthless product given prior experience.

There may be an insurance out there that you can get that is worth its weight. If you find it, do let us know.

Apart from the insurance route, using reputable agents who vet properly is your best defence.

Hope this helps in some way.

Regards

Jason

I have a terrible run of tenants.
Homelet have always paid out.
Currently for one tennant they have paid out for a year. (Still waiting court date).

They even renewed the policy while paying out, WIth the rent increase listed on the tenancy.

Just written off £500 owed rent , tenant left owing it after promise after promise to pay not worth the hassle . ,

Reply to the comment left by Michael Booth at 22/03/2024 – 09:07Frankly you got away cheaply.
There are many worse.
A Money Claim on Line claim leading inevitably to a CCJ helps fellow LL.
Given the small amount (compared to challenge of having an undischarged CCJ) it may even encourage payment by former T.

Insist on a home owning working guarantor.

Going forward, I would cherry pick tenants. Ensure they’re in secure jobs (if there’s such a thing!), insist on a UK based guarantor as well who earns 3 X monthly rent. This gives you better protections in the event of no payment of rent. Conduct fully comprehensive referencing on both tenants and guarantor. If they don’t pass, do not accept. If they do pass opt for rent guarantee insurance (RGI) with tenant eviction legal cover (cost circa. £220 per annum up to £25K rent/year). You will only be offered RGI if your candidates pass the referencing. Keep in regular contact with the tenants and conduct period inspections without being too much of a nuisance to them. Treat your tenants with respect if they’re respectful to you. Never, ever treat them as friends or mates and never accept lunch/dinner/drinks or even a cup of tea if you visit them Treat all tenants as would with any other “Bricks and mortar” customers. The above is not 100% fail-safe, but it may just put you in a better position than previously. This is exactly what I do and how I operate my BTL business and so far thank God, it’s working! Good luck!