It goes without saying that rent is the heart of a rental business. So much so, that about 59% of landlords believe that steady income is more important than credit history, according to a survey conducted by SmartMove.
The fear of tenants not paying rent is the reason why most landlords require prospective tenants to have an income that is at least three times the rental rate.
Understandably, without any rental payments coming in, you won’t be able to pay your:
- property taxes,
- mortgage payments,
- or any other debts and expenses.
Sure, tenant screening is critical.
However, it doesn’t guarantee a conflict-free tenancy. Even good renters can fall on hard times, which can impact their ability to pay rent.
Luckily, with Rent Default Insurance (also called rent guarantee insurance), you can rest assured that you’ll get paid in the event a tenant can’t pay rent.
This insurance reimburses you for your lost income when a tenant defaults.
What’s more, on top of your rental income reimbursements you’ll also receive $1,000 to pursue an eviction should it become necessary.
It couldn’t be simpler or better for landlords!
How Rent Default Insurance Works
The concept behind rent default insurance is pretty straightforward. As a landlord or property owner, you’ll need to take out a policy per tenancy or against a single property.
The resulting coverage will then protect you against the experience that landlords fear most.
That is, tenants who can’t pay their rent and the dreaded eviction proceedings.
By protecting yourself against negligent renters, you’ll then be able to approach your property investment with more confidence. That added confidence will then have a ripple effect on your property investment business.
For example, you’ll have the assurance to buy a second rental property, a third, and so on.
How it Helps Rental Property Owners and Real Estate Investors
As a property owner, you’ll be more confident and motivated to invest in properties. This is because Rent Default Insurance will allow you to insure (protect) your rental income.
Landlords have many things to worry about. One of the most irritating things is when tenants pay rent late or don’t pay rent at all. Rent guarantee insurance takes away this worry.
With Rent Default Insurance, you can get paid up to 6 months of rental income if the renter leaves for reasons such as abandonment or eviction. You can also be reimbursed up to 3 months of the rental income when a renter leaves your unit for reasons like military status, judicial order or death.
But what are you to do when your tenant is unable to pay rent?
Or, when they grossly violate the lease or rental agreement?
Rent Default Insurance will help you pay for legal fees related to the eviction process. Although tenant evictions can be costly and frustrating, sometimes it’s necessary.
With Rent Default Insurance, you’ll receive $1000 to help you pursue an eviction. At the same time, you’ll also be receiving reimbursements for your lost rental income for up to 6 months.
On top of this, you will also be able to have peace of mind. Without the certainty of timely rental payments, owning a rental property can be a source of constant worry.
Luckily, there's a solution!
With Rent Default Insurance, you can rest assured that your rental income is protected. And with this extra boost of confidence, you also have an incentive to invest in even more properties.
Every investment carries some degree of risk.
Rent Default Insurance helps minimize the risk associated with rental property ownership.
Rent Default Insurance offers you protection against the two biggest loss inducers – tenant’s inability to pay rent and costly eviction proceedings.
Guarantee your rental income and have PEACE OF MIND.
Aaron DiCaprio is an attorney, investor and CEO of Rent Rescue (www.rentrescue.com). Rent Rescue provides rent default insurance that reimburses landlords up to 6 months of lost rent and $1,000 of legal expenses when a tenant defaults on their lease. He can be reached at firstname.lastname@example.org.