John Fegy

Many property investors have the issue of timely rental payments to consider, and this is especially pertinent in poor economic times. With the recent problems within the UK, guaranteed rent London has become a popular conversation topic around many landlords’ dinner tables. Many landlords are now fretting over rental payments, and the escalation in defaulters. Obviously buy to let property is a valuable asset class, and has been providing a good return within the UK, and especially within the UK market. However, this return does not come without risk, and many landlords are now investigating options where they can safeguard the rental payments. A number of organisations and some letting agents are now offering this service, where the rental payment is guaranteed, even if the tenant does not pay. Obviously the landlord will pay a premium for this service, but this premium may be inconsequential in relation to a potential of default on the mortgage from a non-paying tenant and problems with cash flow. Many letting agents and other organisations also offer some form of insurance for damage to property, but this sometimes comes at an added price. You need to ensure that paying for the guarantee and peace of mind of continuous rental, outweighs any costs associated with taking out a product of this type.