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Renting house out - guarantee insurance/guarantor services

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  • WFO
    Established TDF Member
    • Dec 2012
    • 1949
    #1

    Renting house out - guarantee insurance/guarantor services

    Renting a house out, looking at rent guarantee insurance

    We advertised it through openrent who offer rent guarantee insurance for like £90 a year which seems suspiciously cheap.
    A prospective tenant has offered to take out a guarantor agreement with housinghand.co.uk which costs them, it appears, about £300 and then £42 a month.


    Has anyone had to claim unpaid rent from either of these firms and did they pay out?

    With the first option openrent has terrible reviews when anyone actually needs to speak to someone, which makes me worry that they'd be a nightmare to get a payment out of.
    I'm guessing with the second option they would not have any real wiggle room to avoid paying out, I'm guessing the price reflects this.

    Any experiences of any other manner of rent guarantee service?




    (a little paranoid this time as the previous tenants cost thousands in unpaid rent, court etc.)
    Tags: None
    • jamesp
      Established TDF Member
      • Dec 2012
      • 6095
      #2
      Originally posted by WFO
      Renting a house out, looking at rent guarantee insurance

      We advertised it through openrent who offer rent guarantee insurance for like £90 a year which seems suspiciously cheap.
      A prospective tenant has offered to take out a guarantor agreement with housinghand.co.uk which costs them, it appears, about £300 and then £42 a month.


      Has anyone had to claim unpaid rent from either of these firms and did they pay out?

      With the first option openrent has terrible reviews when anyone actually needs to speak to someone, which makes me worry that they'd be a nightmare to get a payment out of.
      I'm guessing with the second option they would not have any real wiggle room to avoid paying out, I'm guessing the price reflects this.

      Any experiences of any other manner of rent guarantee service?




      (a little paranoid this time as the previous tenants cost thousands in unpaid rent, court etc.)
      Slight skew, did you pursue the previous tenants through the small claims court to recover the money/ costs, or just take it up the arse like it seems to be expected?
      Not had the un-paid rent issue, just had a noise complaint from the council about my tenant though.

      Friend of mine rents around fifty odd properties, their favoured method is a personal guarantor, who is a property owner. In the event of a problem, they can (although only had to a couple of times) put a charge against the guarantors property.

      Means they have to wait until the property is sold, but they are legally guaranteed the money. Friend is not a solicitor, but has a law degree and a Masters in law specialising in property.


      Ultimately would you trust an insurance company?

      Just got off the phone with NFU insurance, so I might be slightly jaundiced.

        Comment

        • UnCheeky Monkey
          I used to be Cheeky
          • May 2018
          • 791
          #3
          Originally posted by jamesp
          Friend of mine rents around fifty odd properties, their favoured method is a personal guarantor, who is a property owner. In the event of a problem, they can (although only had to a couple of times) put a charge against the guarantors property.

          Means they have to wait until the property is sold, but they are legally guaranteed the money. Friend is not a solicitor, but has a law degree and a Masters in law specialising in property.
          Charging orders are long term security, rather than debt recovery really, but they do crystallise the mind, are very easy to get where liability is clear, and tend to make people pay (and don't preclude other means of enforcement in the meantime). Turning them into an order for sale is possible, but not common. But getting a personal guarantor with assets on the hook sounds like a really good idea IMO, where possible
          Half the population of war-torn Yemen - 14 million people - are facing "pre-famine conditions", the UN has warned

            Comment

            • WFO
              Established TDF Member
              • Dec 2012
              • 1949
              #4
              Originally posted by jamesp
              Slight skew, did you pursue the previous tenants through the small claims court to recover the money/ costs, or just take it up the arse like it seems to be expected?
              Not had the un-paid rent issue, just had a noise complaint from the council about my tenant though.

              Friend of mine rents around fifty odd properties, their favoured method is a personal guarantor, who is a property owner. In the event of a problem, they can (although only had to a couple of times) put a charge against the guarantors property.

              Means they have to wait until the property is sold, but they are legally guaranteed the money. Friend is not a solicitor, but has a law degree and a Masters in law specialising in property.


              Ultimately would you trust an insurance company?

              Just got off the phone with NFU insurance, so I might be slightly jaundiced.
              Going to go to court for it.
              The ingrate pieces of shit didn't bother their arses to tell us when they moved out so first we need to get a possession order to cover us against wrongful eviction. (we'd already started a section 8 claim but it got postponed as we messed up on the evidence)

              Then it looks like we need to find where they've moved to and apply for an attachment to earnings or similar, to probably get paid back at £3 a month or similar.


              It seems the moral of the story is don't give an inch

                Comment

                • jamesp
                  Established TDF Member
                  • Dec 2012
                  • 6095
                  #5
                  Originally posted by WFO
                  Going to go to court for it.
                  The ingrate pieces of shit didn't bother their arses to tell us when they moved out so first we need to get a possession order to cover us against wrongful eviction. (we'd already started a section 8 claim but it got postponed as we messed up on the evidence)

                  Then it looks like we need to find where they've moved to and apply for an attachment to earnings or similar, to probably get paid back at £3 a month or similar.


                  It seems the moral of the story is don't give an inch
                  Apparently so, get labelled as a twonk, so you may as well be one.

                  Section 8 are not very Landlord friendly by all accounts, hence the reliance on 21s.

                  Welsh Assembly toss pots are currently consulting (ie they will) on banning section 21 notice, so everything will rely on the 8: they also intend altering the minimum tenancy term times, so a you have to give six months notice as a landlord, and then only after the end of six months from the commencement of the fixed term.


                  My friend has a low opinion of section 8, a tenant offers a payment plan of 9/10s of stuff all to the court, and the court will throw out the petition.


                  If my tenant moved out now(just signing another six months), I would probably sell.

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