Good reason for rent guarantee scheme

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U
Up4Rental
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I have never quite looked into Rent Guarantee Schemes in the past but have to say I can see some benefits, If you have a possible tenant and they cannot supply a suitable guarantor then would the following be a good course of action:

Get them to pay for the rent guarantee scheme about 75 inc Referencing, through Homelet.
Get them to sign sect 21 notice at time of moving in
If they fail to pay rent in first 6 months then claim
Policy will kick in after 1 month in arrears so you claim one months loss from their deposit.
Then the policy pays your rent
If at the end of 6 months they are still not paying then you can enforce the sect 21 and get them out.

Surley the benefit is that you do not loose financially at any point and do not have the worry about going through the courts to get them out or wait until end of their tenancy to enforce sect 21 loosing rent all this time.

01/04/2007 00:00

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