Page 7 - Lettings Revolution

efit 3:
Peace of Mind

To offer true peace of mind to the landlord, every agent should
offer the option of a rent guarantee. This is simple under a
Primary Tenancy™ as it can form part of the contractual terms,
although importantly, it does not have to; it is just as possible to
offer a contract that only commits the agent to paying rent if they
receive rent from their tenant.

With conventional agency there is a real problem with the agent
offering a rent guarantee and with their present practices, we
believe some agents could be in danger of breaking the law.
Selling or providing insurance is a regulated activity in the UK,
which means for an agent to sell a rent guarantee insurance
to a landlord they have to be regulated, few agents are. The
temptation is then there for the agent to offer a rent guarantee
themselves, leaving them open to the charge of illegally offering
the services of an insurance company. Equally problematic is the
practice of the agent buying insurance to cover the risk as they
may not have the prerequisite insurable interest to do so legally.

Peace of mind extends beyond guaranteed rent and extends
to the eviction process, which with conventional agency has to
involve the landlord and inevitably results in stress for all parties.
With the Primary Tenancy™ the entire eviction process, from start
to finish, can be handled by the agent acting in their capacity as
landlord.