13th June 2017
For as long as I’ve worked at Moores (15 years and counting!) we’ve always included a FREE 6 months’ rent guarantee* with every tenancy satisfactorily referenced through HomeLet, the independent referencing company that they use. For the landlord this provides financial protection should a tenant fall into arrears with their rent during the first 6 months (as long as they’re still living in the property).
In simple terms, the policy is purchased by us once the applicant has been satisfactorily referenced (credit check plus positive employer and landlord references).
Claims must be made within 31 days of the rent becoming due and copies of the tenancy agreement, guarantor agreement (where applicable), application form(s), proof of the tenants ID and an up to date rent statement must be sent to HomeLet. Thankfully this can all be sent to HomeLet securely online. Once the claim is accepted by HomeLet, and subject to any policy excess, payment is then made to Moores, as the policyholder, and we will then make payment to the landlord. HomeLet will chase the tenant for the outstanding debt. Non payment of rent can affect a tenant’s credit rating and will certainly impact on their ability to rent through an Agent using HomeLet to reference in the future.
This rent protection also provides legal cover for landlords should the matter escalate beyond just one month’s unpaid rent. So if the tenant fails to pay rent in the second month (thereby owing 8 weeks rent) HomeLet will serve a Section 8 Notice. This is the start of the legal process to recover possession of the property. Where tenants continue to not pay their rent, whilst they remain in the property, HomeLet will enforce the Section 8 Notice through the Courts. An added benefit of this cover to the landlord is that HomeLet will appoint legal representation to attend the Court hearing. Court hearings can be daunting, even for the experienced landlord, and whenever I’ve attended Court for possession I’ve always welcomed this valued experience and support. It’s unusual for possession to not be granted by a Judge, under Section 8 rules, so invariably the tenant is instructed to vacate the property (usually within 14 days) by virtue of a Possession Order. In extreme cases where the tenant doesn’t leave the property on the due date the Court will then enforce the Order by instructing a bailiff to remove them. Again, this is provided under the rent protection.
Where we are managing the property for the landlord rent guarantee claims to HomeLet form part of our well established procedures for dealing with rent arrears. For the inexperienced landlord however this can often prove alarming and most find themselves ‘out of sorts’, particularly if they’ve not dealt with rent arrears before. If you currently deal with your own property management but would like to know more about our full management services please don’t hesitate to contact Angie Wright, Rentals Manager, at our office on 0113 274 2033.
If you have any specific queries about rent protection please feel free to give me a call on 0113 239 9752 and I’ll be more than happy to talk them through with you.
*12 month rent guarantees are available but only to landlords whose properties we manage.