SMF - Just Installed!

Rent guarantee insurance yes or no?

Started by kesm, December 22, 2020, 04:05:22 PM

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kesm

I had a fixed term contract with my tenant, which is now a rolling contract with 2 months notice. If he doesn't pay the rent, do I issue him a section 21 notice or simply email him and state that he needs to leave after the end of the 2 months? 

I am trying to figure out if I should buy rent guarantee insurance with legal protection (which is very expensive nowadays) or if it is not worth buying it, cause of the shorter notice period?

​​​​​​​Thank you

Hippogriff

I think there's a more fundamental misunderstanding of a rolling contract (SPT) here. You may well have "at least" 2 months of notice to the Tenant... but the Tenant only has "at least" 1 month notice to you. That is statutory law, you cannot override that, however you might try, or wish to. Asking the Tenant to leave in case they do not pay rent is unlikely (not for definite) to result in the outcome you want... more likely someone overstaying and living there for free for several months (but that is no different to if there was a new fixed term in place, really).

Whether RGI is worth it or not, I will not say... I will only say I've never purchased it.