The power of rental assurance in a market downturn

Rental assurance is something that we’re committed to offering our investors; we offer our clients some of the longest and strongest rental assurances available in the residential investment market.

The surety provided by a rental assurance can prove invaluable, no time more so than in a market downturn.

What is rental assurance?

Rental assurance is when a rental yield is fixed for a certain period of time and occurs when a property’s management company is so confident in delivering the return that they will cover any shortfall themselves should the property not perform as expected.

A rental assurance demonstrates huge confidence in a property from a management company and provides a period of certainty for investors.

Rental assurance is not to be confused with a rental guarantee, see our earlier blog to read more about the difference between the two: https://tdpropertyinvestment.com/what-is-the-difference-between-rental-assurance-and-rental-guarantee/

How long does a rental assurance last?

Rental assurances last varying lengths of time, in some instances one development might have different lengths and corresponding rental yields available for investors to choose from.

A rental assurance might last for 2 or 3 years, in some cases it’s the first 12 months or in others, they can remain in place for 10 years. In the instance that the period is significant rental reviews are set in place at certain points over the duration.

What happens if a tenant doesn’t pay?

If a tenant fails to pay their rent, an investor is paid the rent due as usual as per the contract in place.

The management company will have insurance in place to cover this scenario.

In a market downturn and difficult times, a rental assurance can offer great relief to landlords and avoid any disruption to cash flows or unexpected shortfalls.

Why choose a property with rental assurance?

Some investors, a very small minority, worry that a rental assurance might prevent them from earning a higher figure over the period of time it’s in place. On rental assurances, rental reviews are in place for this purpose.

Successful buy to let property investors focus on long term results, rental investment is not well suited to those seeking an immediate turnaround, although it’s not unheard of for a property to see a very quick spike in capital appreciation when it comes to rental figures any change is likely to be gradual over time.

The best investment strategies are usually those set out over 5, 10 or even 15 years with expectations for capital growth and a steady rental income throughout the longevity of the investment.

Choosing a property with a rental assurance in place allows for a straightforward investment process where the facts and figures can be understood in advance and relied upon.

UK property investment

The team at Thirlmere Deacon have a wealth of experience assisting discerning investors in selecting and purchasing UK property investments. To learn more about rental assurance or to discuss your plans for UK property investment we’re available on the phone +44 (0) 2039507939 or on email at info@thirlmeredeacon.com.

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