Letting? Your top tips please.

allyl

Hi all - as a landlord that uses a managing agent can anyone help me understand if I should be paying extra to the agency for what they call 'PREMIER RENT SERVICE GUARANTEE':[FONT=&quot] This is a guarantee against unforeseen circumstances that may affect your rental income ie. A tenant with a good income can lose their job or a couple may divorce or a tenant may be unable to work and not pay the rent. This service provides a guarantee in respect of unpaid rent, legal fees, alternative accommodation, and experts on hand to get you property back and recover your losses. Should a tenant whom we have introduced fail to pay the rent, we will pay the rent you are due from your property until vacant possession is obtained. Additionally, we will pay 75% of the rent for up to two months after vacant possession has been obtained whilst a new tenant is found. Legal expenses and the cost of alternative accommodation are also included.
Thank you
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G_M

As with all insurance (except car insurance which is required by law) it is up to you to decide whether you want to make payments 'just in case'.

Obviously the cost of the premium is a factor to consider (if it's £3.00 per month you may make a different decision to a premium of £33.00 per month).

The events being insured are also a factor.
* Will it pay out in all circumstances where rent is not paid?
* After rent is how long overdue? A week late? A month? 6 months?
* Does it exclude the first (2nd?) unpaid month?
* Is there a limit on how much it will pay (or will it continue to pay out, month after month for ever if the tenant defaults)?

You need to read the policy carefully before deciding.

You should also shop around - you don't have to buy the policy from your agent (who will be getting a commission for selling it to you). Other policies might be better. Or cheaper. or both.

See also:

* New landlords: advice, information & links

* Letting agents: how should a landlord select or sack?

allyl

Thanks for the advice.