A property for rent especially if it's a residential property is a business that leaves the landlord with many sleepless nights that are consumed with thoughts and concerns. This usually refers to the ability of the tenant to pay consistently and on time for the monthly payments. And if the unfortunate happens that the tenant has so many past dues and the landlord feels that it's for eviction, does he have a legal right to do this and how can it be done? That's why there is such a thing as the Rent Protection Insurance today; this keeps the landlord protected and having his leasing business operating properly.
How does the insurance help the landlord and keep his investment protected? Today, there are a number of companies that offer Rent Guarantee Schemes in the instance, that the landlord has to have the current tenant evicted. This can also assure that the unpaid rent will still be received as should be. As part of the requirement of the rent guarantee insurance policy, the tenant first undergoes to a complete credit background check, before being approved by the agency itself. The fact that there is a background investigation on the capacity of the tenant to pay and a peak at his or her financial background, the landlord can rest assure that he will not be dealing with a crook!
How can this be started and what are the things that the landlord has to do and know about? To begin with, the landlord has to be comply with the required payment, which is either 6 months or 12 months of rent; once the premium is paid, then can the tenant start to move-in. Some more facts can be read from http://www.ehow.com/about_5291055_do-need-buy-landlord-insurance.html. If it happens that the tenant is unable to pay within the period covered by the premium, he first has to do the standard move which is to issue a letter of notice. If having done this, the tenant still doe not comply with the payment and ignores the letter, that's when the insurer has to be contacted and the unpaid balance will be given. The eviction of the tenant will determine on how long this will take place and go on. In the case that the tenant is not able to pay for the first month, it can be considered as the security deposit already.
Part of the requirement of the policy as well is for the landlords to give proper and valid identification to the insurance company. He or she has to comply with this so when the time comes that a claim is needed, there is a guarantee that it can be received right away and with no further complications.
Together with the the problem with the payment, there is also the concern on the property itself and that it does not damaged in any way. The property therefore, has to be insured as well. The landlord household insurance premiums are known to be more expensive as compared to other owner-occupation policies available today. The reason for this is very obvious - when the owner stays in the property, he or she is sure to be careful not to destroy anything, compared to a tenant who has less care as to what happens to the place while he or she is staying there. Tenants can be anyone, from professional doctors, to students, to business owners or even to crazy people who happen to have money to pay for rent!