Safeguarding of rental income?

Safeguarding of rental income?

by Readers Question

Guest Author

14:49 PM, 16th November 2020, About 4 years ago 13

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With the increase in tenants defaulting on their monthly rent payments and us landlords possibly having to wait 6 months before starting court proceedings, what are other landlords doing to safeguard themselves?.

My tenant has indicated that he is moving out around the end of the year, other than requesting 3 months pay and bank statements for new tenants plus the usual electrical, gas etc paperwork, just seeing what other landlords are doing to ride this period?

Many thanks


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Neil Patterson

14:51 PM, 16th November 2020, About 4 years ago

Hi Alan,

Taking a guarantor in all circumstances is very popular currently.

Michael Fickling

20:17 PM, 16th November 2020, About 4 years ago

Get good rental insurance.


8:50 AM, 17th November 2020, About 4 years ago

Hi Alan I am now insisting on a home owner guarantor on all my new tenancies. You can request a guarantor reference on nrla website for around £30 and they also provide a deed of guarantee form which you can print off free if you are a member. Like you, I feel we need to protect ourselves whatever way we can as any protection from the government has now gone.


9:58 AM, 17th November 2020, About 4 years ago

If I am left with an empty property I will sell. Cannot afford the risk of getting another bad tenant with no back up from the government. No income, no Section 24 or tax to pay, no tenant hassle, no sleepless nights!

Robert M

10:50 AM, 17th November 2020, About 4 years ago

Insisting on a suitable guarantor (rent and damage guarantor, not just a rent guarantor), is the only way to protect yourself.
While you can get some rent guarantee insurance, this does not usually cover you for the full scope of potential losses, whereas a guarantor can be held fully liable for ALL the debt owed by the tenant, whether this is for rent arrears, damage to the property, or any other breach of the tenancy agreement that has caused a loss (subject to the limitations of the Tenants Fees Act of course).
If you can get multiple guarantors, that is even better.

Make sure the Deed of Guarantee is signed AND witnessed, in your presence.

Make sure the Deed of Guarantee cannot be cancelled, and does not expire upon the end of a fixed term.


16:50 PM, 17th November 2020, About 4 years ago

Reply to the comment left by Carol at 17/11/2020 - 09:58
I can’t say I blame you Carol. Me and my husband are also starting to think along the same lines and holiday lets are looking like an attractive alternative. Need to be quick though before CGT is doubled! Another landlord friendly tax! Not!! Good luck!

Registered Manager

11:47 AM, 18th November 2020, About 4 years ago

Hello everyone this may be a little bit of a deviation from the topic. However perhaps worth exploring. I’m an experienced Ofsted Registered Manager of residential children’s homes. Providers are always looking for properties. I am currently looking for properties for that purpose. Pls do get in touch of this is something you’d like to explore.


12:34 PM, 19th November 2020, About 4 years ago

I'm not a fan or either rent guarantee insurance (which seems to manage to weasel out of paying in many circumstances) or guarantors, who's guarantee agreements rarely survive a tenancy renewal or rent increase and are very often badly created and unenforceable. I think that there are no guarantees with any method now, but I get a property referencing report that includes a full identity and credit check and supplement this with bank and credit card statements where I need to and I only rent to people who can afford the rent themselves from their own income.

Jessie Jones

18:19 PM, 21st November 2020, About 4 years ago

If you can afford any mortgage repayments without having a tenant, it might be a good idea to leave the property empty just until the government re-instate the ability to evict bad tenants, or at least until you find a tenant who you are 100% happy with.
At least half of my profit comes from the increase in equity, which I get with or without a tenant.
Having a property empty for a few months might also give you the opportunity to get any remedial works done, and also in case you decide to sell off if the Chancellor does decide to double CGT.
You will have to find a way of dealing with the Council Tax if you leave it empty.


16:24 PM, 22nd November 2020, About 4 years ago

I get Rental Guarantee Insurance for all my residential tenants.

I also furnish my properties well, and market them to professionals & families. Attracting a higher calibre of tenant has served me well, as these people are far less likely to stop paying rent.

Even in normal times, using the court system to get a tenant out is a disaster. By the time the tenant is out, you may have 6 months of tenant arrears. They may also have done damage to your property

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