Rent Guarantee and Legal Expenses Cover
The Agent has an obligation to advise the Clients of the risks associated with non-payment of rent and tenants not complying with the terms of the lease.
The following points should be taken into consideration and may arise as a result of NOT having adequate cover in place:
- Should a tenant stop, or is late paying the rent it is the Landlord’s responsibility to continue with any mortgage payments that may be due.
- If a tenant fails to vacate a property in addition to not paying rent, the Landlord is responsible for appointing a Solicitor to obtain possession and all the costs involved.
- Court action to recover arrears is the Landlord’s responsibility.
- The Landlord is responsible for all associated Court costs.
- Tenants will sometimes seek housing assistance from a local authority and may be advised to remain in the property until a Court Order has been served seeking possession. The Landlord will be expected to meet all the legal fees.
- The average time taken to obtain possession from the original arrears is normally between 4 and 5 months, the loss of rent including legal expenses could amount to several thousand pounds which is not refundable.
- It is not the Agents responsibility to pursue outstanding rent after a tenant has vacated the Property.
As Agents for the landlord we would always recommend that Rent Guarantee and Legal Expenses Cover should be taken out as a precaution to minimise any possible risks.