Saving Your Bacon on the Rental Front
Posted on 17. Feb, 2009 by admin in General
If you’re a landlord, chances are you’ve saved to buy your investment property, and have taken great care whom you let your property out to. You’re responsible for everything, from the amenities to the utilities, and the general upkeep of the building and/or surrounds. So to have someone sign the lease agreement, pay their bond and behave in a pretty good manner for the first few weeks or months – only to have them stop paying their rent – can be devastating. After all, you’re still paying the mortgage, and the bills are in your name. So if the money stops coming in, it’s ultimately your head on the chopping block.
What if there was a way you could be provided some kind of insurance, a guarantee, that if the tenants stopped paying, the income would continue? The answer is rent guarantee insurance. If the people renting your dwelling stop paying, you can be guaranteed that your bills and loan continue to be covered. Of course, you’ll still need to make preparations to replace the tenants, but you can rest assured that you won’t be foreclosed on, or your power, gas and water won’t be switched off in the mean time!