Rent Warranty vs Guaranteed Rent

You are thinking of finding tenants for your property and you’ve seen or heard the words Rent Warranty and Guaranteed Rent, but what do they mean? Rent Warranty (Rent Guarantee) means your rental income is insured for payment by an insurance provider in the event your tenant fails to pay rent. Guaranteed Rent means the payment of your rent, when the tenant defaults, depends on the financial stability of the company offering to guarantee your rent.

Rent Warranty vs Guaranteed Rent


(Rent Guarantee Insurance):

Will cost you a small fee
You will get paid if the tenants stop paying rent
How long after tenant stops paying rent before your insurance pays? 1 month.

WHAT IS COVERED in the Rent Warranty (Rent Guarantee) insurance deal offered with West Midlands Lettings promotion?

– Cover available for 6 or 12 months
– Cover on a per property basis – not per tenant
– Legal expenses costs for obtaining vacant possession up to £25,000
– Cover provided until vacant possession gained
– Up to a maximum of 6 months’ rent paid
– Part cover available if all applicants do not qualify
– Covers all categories of tenant
– Renewable
Additional Benefits:
– No re-referencing requirement on renewal
– Transferable between tenants
– No excess due – pays from first month of default
– Section 21 enforcement cover provided

– VS –


This is not the same as Rent Warranty.

– The company taking the property is guaranteeing the rent and then sublets to occupants (rent is not insured)
– Doesn’t cost you anything
– You will get paid if the tenants stop paying rent
– There is no maximum number of months to when the rent will stop being paid usually the company would carry out evictions and replace the tenants themselves.
– If the guaranteed rent arrangement goes wrong or the company offering the rent guarantee goes bust then there will be a problem with getting rent and getting the property back from the occupants
– Landlord is still responsible for HMO licensing, fire safety check and overcrowding

We highly recommend landlords have Rent Warranty on their properties to rent. Get your rent paid, legal fees paid if required, no excess if you make a claim, etc. This insurance works as the tenants were referenced and approved before move in. However, a tenant with a good status at the start can have a change in circumstance that causes rent arrears. When this happens, you want to make sure you can still receive rent on your investment property.

Right now get a FREE 6 or 12 months Rent Warranty insurance cover from West Midlands Lettings when you use the Find Tenant or Property Management Service. Tenants must pass set credit referencing criteria from the insurance provider to qualify, so you know you are having quality tenants with this deal. Visit Landlords or call 0121 525 5930 to enquire.


Categories: Property News