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What are rent collection, rent guarantee and rent protection?

What are rent collection, rent guarantee and rent protection?

The rent is the fuel which powers the letting business. It pays the mortgage and creates profit for landlords, but any delays in collecting the rent and pretty soon the wheels could well and truly fall off. So, every landlord needs to do everything they can to ensure the rent cheque lands safely in their bank account like clockwork every month.

Being a DIY landlord can sometimes be easier said than done. Luckily, you do have options. And help is at hand. Here at MakeUrMove, we provide several services to landlords to help ensure the smooth flow of rent. But how can we help you with your rent collection process?

Rent Collection 

This may sound rather self-explanatory. Rent collection means MakeUrMove will collect the rent from your tenant for you, including arrears chasing.  This allows you to be completely hands-off. This is especially useful if you have more than one property to manage, are living in another area or have a second career. Whatever the reason delegating rent collection to MakeUrMove saves you time and streamlines your business.

MakeUrMove have collected over £10million in rent for our landlords and we have an industry-leading arrears rate of less than 1%. Our expert collection team is based here in Manchester. They are highly experienced in dealing with tenants and the amazing arrears rate of 0.9% compared to an average of 9% is a testimony to how efficient they are.

When your tenant pays the rent, we send an instant notification to you. We then send you the payment within three working days. If for any reason your tenant falls into arrears we will take all the action needed to manage those arrears and get the tenant's payments back on track.

To take advantage of our rent collection service you should subscribe to the MakeUrMove Good Landlord package. This service requires a year's commitment but costs just £20 per month. And as an added benefit it also includes legal eviction assistance. But we'll also market your property, as well as referencing your tenants and helping with tenancy documents.

Rent Protection

Given the importance of the rent, it's always nice to have some safeguards in place. Ideally, the rent will arrive on schedule and in full, which is usually the case. However, despite the best efforts of all involved, a tenant can sometimes miss payments and slide into arrears.

MakeUrMove's Rent Protection package provides additional peace of mind should your tenant falls into rent arrears. With the Rent Protection package, you can receive all the benefits included in the Good Landlord package, and get rent protection on top of it. The addition of rent protection costs only an extra £10 a month.

What is rent protection?

Rent protection is not the same as rent guarantee insurance. With rent protection, the landlord will need to make a claim to us once the tenant has met a fixed minimum for the amount of rent they have in arrears (usually at least 1 month in arrears). Once the tenant has met this fixed minimum, the landlord can file a claim to recoup the lost income. 

If you are looking for more than just rent protection and basic management services, you can have complete peace of mind with our full property management service. Our full property management package costs just £65 per month, which also includes rent protection. The only condition for rent protection is that the tenant has passed our referencing process, which all our property management services include.

The full service is ideal for those DIY landlords who want to outsource the daily management tasks. Our full property management service also includes:

  • Advertising Property
  • Compliance Checks
  • Tenancy Documents
  • Utility Notifications
  • Legal Eviction Assistance
  • Rent Protection
  • Maintenance Management
  • Safety Reminders
  • Regular Inspections

Rent Guarantee Insurance

Rent guarantee insurance is an insurance cover, which allows you to receive the full rent on time every month should your tenants be unable to pay their rent - regardless of whether the tenants have paid or not. 

If you're a DIY landlord who depends on the monthly rental income to pay the mortgage on your buy-to-let property, or you rely on these payments from tenants as your only source of income, this type of guarantee insurance can be particularly useful.

Want to learn more about MakeUrMove services? Check out all our DIY landlord property management services here.

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