Rent insurance .

[Luke]

Is it straight forward ?
You get rent insurance and if the tenants dont pay , the insurance company pays you .
Is there anything that you need to be aware of or look out for .
Or is it straight forward ?

[AndrewDod]

Yeah. You give them £70, selected tenants you should never have selected, and then sit back with your feet up and watch the £10,000 cash roll in for the next 2 years as they get evicted. Life is peachy.

[Gordon999]

No , its not straight forward.

The "rent insurance cover" is only offered after the prospective tenant has passed the credit check procedures, applied by the letting agents. If you find your tenants by using online method, then you bypass the credit checks applied by letting agent working in estate agents offices on the High Street of your town or city . You probably miss out on the learning experience from the letting agent about the best ways to operate the BTL business .

Obviously if the applicant wanting to rent has no job or insufficient income to cover the rent , rates , electric and gas bill and food etc or poor payment history , its not going to happen for the applicant.

[Luke]

AndrewDod,

No need for sarcasm .

[Luke]

Gordon999,

Although you can do the credit checks online yourself these days .
Costs £20 per check and they state whether the potential tenant can get insurance for rent guartanted

[Luke]

AndrewDod,

No, you can do online reference checks on any potential T for £20 and if they pass, the insurance company will accept the insurance application .

[Luke]

Just been reading the rental insurance small print .
It states that you must be talking legal action against the tenants for non payment of rent .
It also states that the insurance company will not pay for any Court action unless you have a 50 % chance of a positive outcome , like recovering the money .
Would the insurance company say that the tenant has no money to pay the overdue rent , so they will not back the claim ?

[AndrewDod]

I think you are starting to answer your own question.

[Luke]

Would the insurance company cover the non paid rent ?
I suppose that depending on if you were taking legal action against the T .
Would that legal action be just to evict them and/or to recover the non paid rent ?