Welcome back to another episode of Stentons Property blogs! This week, we’re exploring why being a successful landlord isn’t just about managing tenants — it’s also about making smart investment decisions! 

As a landlord, you always hope things will go smoothly. Most of the time, they do. But even the best tenant can hit a rough patch — and when they do, you still have your own bills, mortgages, and maintenance costs ticking along. 

That’s where Rent Guarantee Insurance (RGI) steps in — an unsung hero of the modern rental world. 

So, what exactly is Rent Guarantee Insurance? 

Rent Guarantee Insurance (sometimes called “tenant default insurance” or “rental income protection”) is a policy designed to protect landlords if tenants fail to pay their rent. 

In simple terms, it ensures that if your tenant stops paying — whether due to job loss, illness, or other financial difficulties — the insurance company steps in and pays you the missed rent, usually for a set period (commonly up to 6 or 12 months). 

Depending on the policy, it can also cover legal expenses if you need to recover possession of the property through the courts. 

What does it usually cover? 

Every policy varies slightly, but a good rent guarantee policy typically includes: 

• Missed rent payments – cover for unpaid rent, usually up to a set monthly amount (e.g. £2,500–£3,000). 
• Legal expenses – if you need to start eviction proceedings, solicitor and court costs are covered. 
• Vacant possession cover – payments continue until the tenant leaves, or up to the policy’s limit. 
• Ongoing protection during disputes – even if the tenant contests the eviction or refuses to leave, the insurance keeps paying rent during the process. 

Some policies also add: 

• Property damage cover caused by tenants. 

• Mediation services, to help resolve disputes before they escalate. 

Why it’s becoming more important now 

If you’ve been in property for a few years, you’ll know that the landscape is shifting fast. 

Here’s why RGI isn’t just a “nice-to-have” anymore — it’s quickly becoming a core part of risk management for landlords: 

• Cost-of-living pressures- Many tenants are financially stretched. Even responsible renters can miss payments if faced with redundancy, illness, or rising bills. 

• Longer eviction timelines- With the Renters’ Rights Bill and the proposed abolition of Section 21 “no-fault” evictions, recovering possession could take longer — meaning longer periods with no rent coming in. 

• Mortgage rates and cash flow- Higher mortgage rates mean landlords rely more heavily on consistent rent to meet their own obligations. A few missed months can cause real financial strain. 

• Peace of mind- The biggest reason? Stress. Knowing you’ll still get paid if something goes wrong makes property management more predictable and far less emotionally taxing. 

A common misconception: “I only rent to good tenants — I don’t need it.” 

Many private landlords and letting agencies do rigorous referencing. Credit checks, employer references, affordability tests — the works. 

But life happens. Even the most reliable tenant can face a crisis beyond their control. 

Rent guarantee insurance isn’t about distrust — it’s about resilience. It’s not just protecting your rental income; it’s protecting your peace of mind and financial stability. 

What to look for in a good policy 

When comparing RGI policies, don’t just look at the headline premium. Ask: 

• What’s the maximum monthly rent covered? 
• How long will the insurer pay for? (6 or 12 months?) 
• Is there an excess period (e.g. the first month not covered)? 
• Are legal costs included, and up to what amount? 
• Does the insurer require specific tenant referencing criteria to be met for the policy to stay valid? 
• How fast are claims paid, and how easy is the process? 

Some landlords get RGI directly through insurers like HomeLet, RentGuard, or Alan Boswell, while others have it included in letting agent management packages. If you use an agent, it’s worth asking if your portfolio is already covered. 

A final thought: renting is a business, not a gamble 

We often talk about property as an “investment” — but investments should be managed with protection in place. 

Just like you wouldn’t run a business without liability insurance, you shouldn’t rent out a property without protecting the income it generates. 

Because at the end of the day, being a good landlord isn’t just about providing a home — it’s about managing your assets responsibly, and keeping your own house in order, too. 

As always, if you have any questions, or are looking to sell, buy, or rent, contact us today! 

Until next time, happy house hunting!