Rent Guarantee Insurance: Why It's Never Been So Important for Gravesham Landlords
With Section 21 now abolished and possession claims taking longer than ever, landlords face greater financial risk if a tenant stops paying rent. Here we explore why Rent Guarantee Insurance has become an essential consideration for Gravesham landlords and how it can protect your rental income and legal costs.
For many years, landlords have relied on the assumption that if a tenancy goes wrong, they can regain possession of their property within a reasonable timeframe. Unfortunately, that is no longer the reality.
With the introduction of the Renters' Rights Act and the abolition of Section 21, the process of recovering possession has become significantly more complex and, in many cases, considerably longer.
Whilst the vast majority of tenancies run smoothly, every landlord should ask themselves one important question:
If my tenant stopped paying rent tomorrow, could I comfortably manage for 12 months or more without that rental income?
The New Reality for Landlords
At M&M, we are already preparing landlords for longer possession times should a tenant stop paying rent or refuse to leave a property.
Based on current court delays and the changes brought about by the Renters' Rights Act, we believe that possession cases in Gravesham could take in excess of 12 months to resolve in some circumstances. During that time, landlords remain responsible for:
- Mortgage payments
- Buildings insurance
- Repairs and maintenance
- Safety certificates
- Service charges and ground rent (where applicable)
- Legal and court costs
Without rental income coming in, this can place significant financial pressure on even the most experienced landlords.
How Rent Guarantee Insurance Can Help
Rent Guarantee Insurance is designed to protect landlords against exactly this scenario. If a tenant falls into rent arrears, the policy can cover the lost rental income and the legal costs associated with regaining possession of the property. In short, it provides valuable peace of mind at a time when landlords face greater uncertainty than ever before.
Why Landlords Choose Our Policy
Our Rent Guarantee Insurance costs £320 per year and includes:
✅ Cover for up to £2,500 per month in lost rent
✅ No excess to pay if a claim is made
(Many policies require landlords to absorb the equivalent of one month's rent before cover starts.)
✅ Vacant possession cover
Up to 75% of the monthly rent for a maximum of three months following possession.
✅ Legal expenses cover
Up to £100,000 towards legal and court costs.
✅ Expert claims management
Making a successful claim often comes down to serving the correct notices, following strict timescales, maintaining accurate paperwork, and ensuring referencing has been completed correctly. Our experienced team manages this process for you, helping to maximise the chances of a successful claim and removing much of the stress involved.
Existing Tenants? You're Still Covered
Where tenants are already living in the property, there is a 60-day exclusion period before cover becomes active. However, it is important to remember that the policy covers the property, not the individual tenant. For example, if your current tenant moves out after four months, the policy simply continues and protects the next tenant for the remainder of the policy term, provided normal referencing procedures are followed.
A Small Cost for Significant Protection
No landlord expects a tenancy to go wrong. However, the consequences of a problematic tenancy have never been more serious than they are today. For many landlords, £320 per year is a relatively small investment when compared to the potential loss of tens of thousands of pounds in rent, legal fees, mortgage payments and maintenance costs.
📞 If you would like to discuss Rent Guarantee Insurance, obtain further information, or arrange cover for one of your properties, please contact our team. We would be happy to talk through the options and help you decide whether it's right for you.
📍 M&M Estate Agents, Gravesend, DA12 1AH
📞 01474 321957
📧 lettings@mandmprop.co.uk