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Let Alliance Rent Guarantee in a Covid-19 World

Posted by on May 28, 2020


Having managed businesses that deliver rent guarantee to letting agents during the past 20 years, the Covid-19 Pandemic has presented challenges that were beyond our wildest imagination.

Today we write with important news regarding our rent guarantee scheme. From today, Let Alliance are delighted to announce that we can now offer Rent Guarantee Insurance to letting agents with standard referencing criteria, no additional underwriting on New Tenancies and Portfolio Transfer for Existing Tenancies. We have a much better understanding of the risks and challenges that we face together.

Our policies ensure you receive 100% of the monthly rent payable for up to a maximum of six months or until vacant possession whichever happens soonest if your tenant defaults. You will also benefit from our market-leading tenant references and up to £50,000 of legal expenses, including eviction costs. Here is a reminder of what our policy provides:

  • Cover for the total monthly rent, up to 4 tenants provided all are referenced and have passed the references
  • 100% of the monthly rent paid for up to a maximum of six months from the date of the first arrears or up until vacant possession whichever happens soonest
  • Total monthly claims limit of up £2,500 per month and a total claims indemnity limit of £50,000 to cover rent and the eviction costs associated with regaining possession of the property as a result of a tenancy breach which gives grounds for possession
  • Covers breaches of the tenancy agreement by the tenant, including non-payment of rent and expired section 21 notices
  • All claims handled in house by Let Alliance team members, who will provide pre-action protocol support
  • No Covid-19 Restrictions
  • All references that are Acceptable or Acceptable with a suitable guarantor will qualify – no additional underwriting
  • Available for new and existing tenancies, full Portfolio Transfer available

Charged at 2% of the rent plus IPT and payable either annually or monthly, cover is on a per property basis.

During this crisis we have managed to continue to write new business, honoured every rent guarantee renewal and paid every valid claim. Our competitors cannot make the same statement. Customers are at the heart of everything that we do at Let Alliance, they always have been and always will be.

We are aware that several rent guarantee providers to letting agents are refusing to pay rents during the Covid-19 crisis. This could potentially go on for several months, so useless for your business and your landlords in the short term.

Our insurer is a recognised global underwriter with unlimited capacity to write Rent Guarantee insurance. Let Alliance, part of Barbon Insurance Group, is a directly authorised broker, regulated by the Financial Conduct Authority, we always meet our obligations to customers.

Surely we cannot possibly be in an environment where;

  • The courts are closed for possession hearings
  • Bailiffs are ordered to stay at home
  • 7,500,000 members of the UK workforce are being paid 80% of their salary up to £30,000.00, otherwise they face certain redundancy
  • Government actions to protect lives and our NHS resulting in a total shutdown of the majority of the UK economy
  • Tenants who either can’t or won’t pay their rent face no short term consequences
  • Professional letting agents forced to close their places of work and run their businesses from home
  • The UK is facing the most catastrophic recession in history

But we are and Let Alliance will protect your business and your customers.  You would never even consider buying a cheap parachute. In this perfect storm make sure your partner is here to stay.

Want to protect you, your landlords and your business?

Talk to our Customer Development team today on 01244 564986 or e-mail [email protected] to discuss how Let Alliance can help you to protect all of your managed portfolio at a time when Landlord’s need it most. Protect your business income and protect your Landlords rent.

We look forward to supporting you through this difficult time.

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