How can landlords fight unpaid rent each month? Focus on how unpaid rent insurance works.
Despite themselves, many landlords have sometimes experienced the unpleasant surprise of not receiving the rent for their rental on time or even for several consecutive months. The payment of charges then takes a different turn and more than anything, the rental investment generates major problems that can end up in court with some tenants definitely lacking confidence and security.
How to avoid this? For landlords, the solution of insurance against unpaid rents takes on more and more meaning, especially when a bad experience has already been experienced by them. Before knowing this, we explain to you how unpaid rent insurance works and how such a solution really helps landlords and helps to sustain their rental investment.
Why insure your property against unpaid rent?
In most cases, a landlord puts their apartment or property generally up for rent for investment purposes. Today, in France, it is still the most popular investment and the easiest to set up, whether by subcontracting via a real estate agency or directly from private individual to private individual.
However, it is not impossible to unfortunately come across tenants refusing after a few months of renting, to pay the rents due. And this, even for those presenting substantial and reassuring files during interviews.
Insuring your property as a landlord against possible unpaid rent therefore allows you to protect yourself from many things. This is particularly the case with Unkle, which ensures that the delay or absence of payment of rent does not impact your finances, by reimbursing you within thirty days of the damage. With such a recognized and reputable insurer, the support does not stop there, because in the event of a bad surprise, it supports you in effectively managing the unpaid bill and ensuring that it does not happen again.
In addition, and if legal action unfortunately seems to be the only solution for a recurring problem, the insurer’s legal expertise places the owner perfectly within his rights and allows him to claim the things that are due to him. Throughout this type of procedure, a good insurer will also guarantee you full payment of the rentobviously.
How to insure your property against unpaid rent by tenants?
Sometimes, it happens that some tenants take advantage of insurance to ensure their file and get closer to an organization that guarantees the financial health and the ability of the home to pay its rent. With an insurer like Unkle, mentioned above, this insurance paid by a tenant when creating his file, can also benefit the owner. In the event of a bad surprise and finally, a payment default over one or more months, the insurer repairs what can be considered as its fault and compensates the landlord for the rent by fully fulfilling its role as guarantor.
In the same style, the insurance provided and taken out by the owners, for example, exempts the tenant from finding a guarantor under certain conditions. Thus, the owner can generally find a tenant for his property much more easily and quickly.
Thereafter, he takes advantage of the insurance in the event of a bad surprise and a legal need. It does not matter if the delay in rent is occasional, frequent or continuous since the arrival of the tenant.
What other benefits can be offered by homeowners insurance?
A competent insurer also engages when all is well, do not forget it. Thus, a good insurer will offer you, for example, to accompany you during the selection of one or more tenant files.
With its team of lawyers, the insurer manages several administrative tasks, in the event of litigation or not and saves you precious time in what remains at the base, an investment.