Why I’m Now Taking Out Rent Guarantee Insurance on My Rental Properties — And Why You Should Consider It Too
As both a landlord and letting agent, I’ve grown increasingly concerned about recent changes in Scottish legislation—particularly the restrictions around tenant evictions. These changes have prompted me to rethink how I protect my rental income and investment properties.
My rental properties aren’t just assets; they provide a vital monthly income. Like many landlords, I want to ensure that income remains secure, stable, and free from unexpected financial surprises. That’s why I’ve now started taking out Rent Guarantee Insurance on all my newly let properties.
What Is Rent Guarantee Insurance and Why Does It Matter?
When a new tenant moves in, I now take out rent guarantee cover for that tenancy. It is possible to take out rent guarantees for existing tenants already in place as long as they are currently not in arrears & they have gone through a stringent credit & reference check process.
I’ve decided that moving forward, any time I re-let a property, I’ll be including this protection.
For example, I have a property with a monthly rent of £1,200. If a tenant defaults, that’s a significant loss. Even with strong references and good financial checks, life happens—people lose jobs, fall ill, separate, or face sudden challenges. If that tenant can’t pay, rent guarantee insurance ensures I don’t carry the financial burden.
What Does Rent Guarantee Insurance Cover?
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Monthly rent payments for up to 12–15 months (depending on the policy)
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Legal expenses related to evicting the tenant if needed
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Peace of mind that you’ll still receive income, even if your tenant stops paying
If a tenant refuses to leave after being served notice, the claim is passed on to the insurance company, and they take over the legal process. While the eviction ban may delay some proceedings, the insurance still ensures landlords are not left out of pocket during this time.
Why We’re Now Offering Rent Guarantee Services to Landlords
At Pure Property Management, we’re now rolling out rent guarantee solutions for landlords across Scotland. In our experience, the cost is relatively low compared to the level of cover provided—especially for higher-value rental properties.
Rent guarantee insurance is especially valuable for properties with higher monthly rents, where the financial impact of tenant default is more significant. For a small annual fee, landlords can protect themselves against months of lost rent and avoid hefty legal bills.
Want to Protect Your Rental Income?
If you’re a landlord who wants peace of mind, or you’re currently dealing with a difficult tenant situation, get in touch with us at Pure Property Management. We can help you arrange Rent Guarantee cover for your property and talk you through the options available.
Let’s make sure your rental income is secure—no matter what happens.