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    • gavynn
    • By gavynn 15th Apr 19, 8:36 PM
    • 16Posts
    • 0Thanks
    Forced to pay rent guarantee insurance despite upfront rent?
    • #1
    • 15th Apr 19, 8:36 PM
    Forced to pay rent guarantee insurance despite upfront rent? 15th Apr 19 at 8:36 PM
    Hi all.
    My GF is about to rent a small flat but has agreed to pay 6 months up front.

    However the estate agents are saying she must also spend 300 on some kind of rent guarantee insurance for 12 months.

    This strikes me as a bit odd as I thought landlords could take this out, and for less anyway. Plus, as she has already guaranteed 6 months of rent why is she paying for the 6 months shes already guaranteed? And why cant she just pay for 6 remaining months if thats the case?

    This is very odd to me and unjust.
    Can this be claimed back somehow? Are they allowed to charge this? its not like she is rolling in money

    (Being at the bottom of the rung she doesnt want to make a fuss and risk losing the flat, but I know the money will make a serious dent in her finances right now. )
    Last edited by gavynn; 15-04-2019 at 8:39 PM. Reason: spelling and detail clarification
Page 1
    • AnotherJoe
    • By AnotherJoe 15th Apr 19, 8:38 PM
    • 13,526 Posts
    • 15,978 Thanks
    • #2
    • 15th Apr 19, 8:38 PM
    • #2
    • 15th Apr 19, 8:38 PM
    Tell her to look elsewhere
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • deannatrois
    • By deannatrois 15th Apr 19, 8:48 PM
    • 5,967 Posts
    • 8,383 Thanks
    • #3
    • 15th Apr 19, 8:48 PM
    • #3
    • 15th Apr 19, 8:48 PM
    The awful thing about this 'insurance' is (she will have to look at the terms to be sure) she is paying a company to come after her in the even she fails to pay the rent (is it to save putting a deposit down though? If so, its actually against any damages and even more complicated as I believe the company will assess any damages and costs she needs to repay, its not necessarily like the DPS which is impartial).

    She could also look at the companies website. See what it promises LL's. If it explains how they operate.

    Paying this sum does not necessarily mean they will magically come up with the money without looking to get it back from her.

    I, too, would look for another place with another agency, I am pretty sure these insurance schemes are a bit of a trap for the tenant and to add insult to injury they are paying for it lol.
    • dimbo61
    • By dimbo61 16th Apr 19, 8:28 AM
    • 10,233 Posts
    • 5,548 Thanks
    • #4
    • 16th Apr 19, 8:28 AM
    • #4
    • 16th Apr 19, 8:28 AM
    Please name and shame the letting agents.
    Another scam on the way
    • D_M_E
    • By D_M_E 16th Apr 19, 9:15 AM
    • 2,428 Posts
    • 71,470 Thanks
    • #5
    • 16th Apr 19, 9:15 AM
    • #5
    • 16th Apr 19, 9:15 AM
    Sounds like a non refundable deposit.

    Surely it's the landlord who should pay rent guarrantee insurance, not the tenant, particularly since the tenant is paying 6 months rent up front?

    Would find another place to rent with another agent/landlord, or try approaching landlord direct if possible.
    • G_M
    • By G_M 16th Apr 19, 10:25 AM
    • 47,795 Posts
    • 58,463 Thanks
    • #6
    • 16th Apr 19, 10:25 AM
    • #6
    • 16th Apr 19, 10:25 AM
    She could (very carefully) read the small print for the insurance.

    It may be that she can take out the insurance, get her tenancy signed, and then cancel the insurance for a (full?) refund (admin charge?) within the 14 day cooling off period.

    Once she has a signed tenancy agreement the LL/agent could not do much.......
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