Owning a rental property can be a great way to enter the world of business and invest in your future. However, it doesn’t come without risks. When your tenant doesn’t pay, you’re left on the hook unless you have rent guarantee insurance.
Renter defaults happen and Rent Rescue steps in to pay the rent when the renter cannot. Essentially, the landlord has the protection to rent their properties without worrying about financial loss. The insurance covers the rent for a specific amount of time.
The landlord may receive the most benefit, but the renter is who pays the premium. Most policies cost about one month’s worth of rent. The payment is often paid before the lease is signed. Since the landlord can take a delinquent tenant to court, the insurance benefits the tenants by covering their legal fees and rent liability.
Guaranteeing rent is now more popular in high-rent locations such as New York City and Los Angeles. Because of the high rents charged by landlords, tenants can obtain insurance to help guarantee the rent when their other financial factors fall short.
Rent guarantee insurance is another way to ensure the tenant pays their rent on time as agreed. It can be a great alternative to cosigners when the prospective tenant doesn’t meet other acceptable requirements.