Tenant is in arrears. Between 1 - Guarantor 2 - Rent Guarantee Insurance 3 - Claim against Deposit which order should I use them?

Landlord Discussion
1

Tenant in arrears. In which order should I use these?

Request payment from guarantor.

Rent Guarantee Insurance.

Request from Deposit.

2

@Tim49

you can only claim from deposit after tenancy ends - has tenant given notice or left? Otherwise you could be waiting to be 3m in arrears, 4wks notice and 8m application for possession through to bailiffs before you get property back. So you may be waiting a long time before you can get from deposit and deposit only covers 5wks max

If guarantor pays up, there wont be rent arrears so you then cant evict on those grounds

. Check your RGI and how quickly they pay up, but that may be quicker than trying to get from guarantor, and you may be able to leave them to chase the guarantor.

good luck

3

Thanks for the info @David240

1 Like
4

You must read your RGI policy & notify them as required. Otherwise, claim from the Guarantor

1 Like
5

Rent Guarantee Insurance.

The first thing to know is that they may not insure you in the future if the tenant has been in arrears. And when you make a claim they will ask for evidence that he has always paid his rent on time - they may refuse your claim if he has been in arrears and you’ve not told them. So even if it’s just one or two month’s arrears, he’s probably uninsurable. And for good reason – he’s an unreliable tenant.

They will approach the guarantor on your behalf. And they may help you start proceedings to evict the tenant, which you need to do.

If you do decide to make an RGI claim, PLEASE let us all know here how the insurance company behaves. There’s very little information on line about this, and it may all be a terrible scam.

1 Like
6

my tenants were 3 months in arrears then left with no notice. as they had left the RGI refused to pay up! total waste of money. in effect i ended up with 5 months with no rent. Their guarantor refused to pay and the insurance wouldn’t accept the claim.

1 Like
7

Why did RGI refuse the claim?

@Nicole26

8

yes you have the order correct, guarantor first

in my experience guarantors aren’t always solid so be prepared for that

as David said deposit deduction is at end

if someone is falling behind, it rarely gets better as others have said get your eviction under way when you can

1 Like
9

because they had left!

10

Thats rough Nicole26, five months with nothing coming in is awful.. Which RGI was it and did the policy say how soon you had to tell them? would be good to know for the rest of us

1 Like