As a landlord, you take a risk every time you find a new tenant. They could meet all your criteria and still end up delinquent on their rent. Rent default coverage offers you rent protection if something like that happens. In fact, there are several benefits of such a plan. Source: www.rentrescue.com
1. Reasonable Premiums
You pay a certain amount per unit so that you’re not stuck paying the same for your 6-unit building as those who have a 500-unit property. You can even incorporate the cost of the premium into your tenants’ rent so that it doesn’t cost you anything out of pocket at all.
2. Multiple Months of Payout
You don’t just get one-month reimbursement if your tenant bails prematurely. You may be eligible for up to six months of rent payout.
3. Partial Eviction Coverage
The legal fees associated with evicting tenants can be more expensive than you would have earned in rent had they honored their leases. Your rent protection policy can help ease some of that expense if the situation calls for eviction.
If you own a commercial property that you lease to other people, you may want to consider rent default protection. It helps minimize your risk and ensures that you get the money you were promised.