As you well know, there is no guarantee that any tenant you rent to will pay you rent every month. Even though you may think a signed lease equals 12 months of rent, this isn’t always the case. Even tenants with near perfect credit scores and good references can go through a rough patch in life that could prevent them from making timely payments. In most cases, even if you pursue them in court you’ll probably never recover lost rent because your ex-tenant won’t have the money to pay you back.
So what can you do? Screen tenants and hope that they work out? Go with a gut feeling? Accept and calculate losses as part of the cost of being a landlord? Certainly these are the strategies most smart landlords will use, but rental losses are still a possibility.
LeaseGuarantee is the only nationwide solution that provides landlords with additional protection to ensure rent is paid out even if your tenant can’t come up with the money. LeaseGuarantee can be purchased for every rental unit you have with coverage ranging from $2,500 to $10,000.
In order to get LeaseGuarantee you first need to screen a tenant with AAOA. The LeaseGuarantee Analyzer included in every tenant screening package is used to qualify your tenant and provide an annual rate, starting at $299/yr. Either you or your tenant can purchase LeaseGuarantee.
Another bonus benefit is that once you have LeaseGuarantee in your toolbox you can confidently fill a vacancy when a tenant leaves. This means you don’t miss out on several month’s of rent while you search for a “perfect” tenant. You can fill a vacancy faster with a tenant you might have normally disqualified.
If 2017 was a year of a rental losses, don’t let that happen again in 2018. The next time you need to fill a vacancy, screen a tenant with AAOA and get LeaseGuarantee coverage. Read more about LeaseGuarantee here or call (866) 579-2262 for more information.