Why you can’t afford to be unprotected anymore

Rent Guarantee Insurance is becoming more important for landlords because the new Renters’ Rights Act raises the arrears threshold and lengthens the process before you can regain possession, increasing the period with no rent coming in. By contrast, a good Rent Guarantee policy doesn’t just cover unpaid rent early, it also pays your legal costs, including solicitors’ fees and court expenses, and can even contribute during void periods, all for a relatively small percentage of your monthly rent.

• Under current rules, landlords can usually serve a possession notice for serious arrears once a tenant is at least two months behind on rent, using Ground 8 under Section 8.

• The Renters’ Rights Act increases the standard arrears threshold from two months to three months and doubles the notice period on serious arrears grounds from two weeks to four weeks. 

• Court timescales are not fixed in the Act, but in practice they are currently running anywhere between two and six months, depending on your area and the local court backlog. And even after an eviction order is granted, if the tenant does not vacate, bailiffs may be required, creating a further cost and delay.

Therefore, a landlord can realistically find themselves three months in arrears before serving notice of a further month, then waiting another several months for a hearing, and potentially facing additional bailiff delays. A five‑ to six‑month income gap – or longer in contested cases – is now entirely plausible.

It’s also worth noting that average court costs can exceed £1,500, before considering solicitor costs, lost rent or bailiff fees.

• With the higher three‑month threshold, a tenant can fall further behind before you have a mandatory ground to seek possession, increasing the total arrears exposure.

• Longer notice periods and uncertain court timetables mean you carry mortgage, service charges and maintenance costs with no rent coming in for longer.

• The Act also gives more leeway where arrears relate to delays in benefits, which can further complicate and slow down possession claims.

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Urpad partners with LetAlliance to provide a Rent Guarantee product designed specifically to cover this kind of non‑payment and the costs of regaining possession. Key features of this type of cover include: 

• 100% of the contractual rent paid to you each month once a qualifying default is accepted, continuing until vacant possession is obtained or up to 15 months of arrears (whichever is sooner).

• All legal costs covered, including solicitors’ fees, court fees, and representation at hearings.

• After the tenant leaves, 75% of the rent is paid for up to three months while the property is empty, helping to bridge the void while new tenants are found.

Unlike some generic policies that only pay once arrears reach a certain level or cap the duration, Urpad’s LetAlliance-backed cover follows the full lifecycle of an arrears case – from first missed payment, through court proceedings, to the initial void period after possession.

When you factor in new, longer arrears periods, potential bailiff costs, solicitors’ fees, and the £1,500 average court expense, Rent Guarantee cover becomes a low-cost way to secure predictable income and protect your investment.

For landlords who want predictable income under the new Renters’ Rights Act, Urpad Property Management can put a comprehensive Rent Guarantee solution in place and manage claims and possession on your behalf. To explore how this protection could work for your portfolio, contact us directly for tailored advice on Rent Guarantee cover and the wider impact of the Renters’ Rights Act on your properties.