Landlords insurance and gurantor

paulinefromtheuk

A relative was talking about his rental property and getting landlords insurance to cover legal fees and rent guarantee. His property is let out to someone on benefits and they had a guarantor.

My friend will only get paid half the rent if the tenant defaults. So, if he was to kick out via legal means the low life that is not paying rent that would be covered by the landlord's insurance. What he can't work out is who pays to pursue the guarantor if it does not cough up? Would my friend be able to claim against the guarantor's property ie by making them bankrupt if they refused to cough up?
Thanks as always.

anselld

If your friend doesn't already know the answer to that then there is a vanishingly small probability that he/she has executed a legally enforceable guarantor deed, however ...

Your friend would pursue the guarantor through the Courts in the same way they would pursue a defaulting tenant. Depending on what the Landlord insurance covers they may get legal assistance to do that - check the policy details.

paulinefromtheuk

Thank you.

G_M

Why does your friend not understand the terms of the insurance he has bought?
Why is he letting a property without understanding the relevant tenancy law?


Having said that, if

landlords insurance to cover legal fees

then the insurance should cover the legal fees to pursue the tenant and/or guarantor. Though I can't read the small print from here!

paulinefromtheuk

G-M. This is a forum like every forum where you get posters that ask questions as they don't know everything. Unless you know everything, I'd tone down my posts.

dimbo61

" low life " not very friendly
GM has put up 45,000+ posts and knows alot about renting and the law.
Landlord responsibility and tenants rights.
You already have a belt and braces approach to getting your rent by having both Landlord insurance and a guarantor.
However you could well be now dealing with Universal credit so could wait some time for rent to be paid

G_M

paulinefromtheuk wrote: »

G-M. This is a forum like every forum where you get posters that ask questions as they don't know everything. Unless you know everything, I'd tone down my posts.

Strange response, but yes, feel free to tone down your posts.

paulinefromtheuk

At least you made me laugh, GM. I read a thread of yours yesterday about choosing a letting agent, very good info.
Yes, you do have a lot of good knowledge about rental matters.
Thanks

Comms69

paulinefromtheuk wrote: »

G-M. This is a forum like every forum where you get posters that ask questions as they don't know everything. Unless you know everything, I'd tone down my posts.

Not knowing everything is fine. Not knowing the fundamental basics of your business is not.

G_M

paulinefromtheuk wrote: »

At least you made me laugh, GM. I read a thread of yours yesterday about choosing a letting agent, very good info.
Yes, you do have a lot of good knowledge about rental matters.
Thanks

Glad it was of help.


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