Rent guarantee: could your rental income be protected?
What would happen if your tenant stopped paying the rent?
For most landlords, it's not something they expect. Many tenants pay on time, month after month. But even reliable tenants can face a sudden change in circumstances, such as losing a job, a relationship ending or illness.
If your rental income helps cover a mortgage or other bills, even a few missed payments can quickly add up. That's where rent guarantee can help.
How the rules on rent arrears have changed
Since the Renters' Rights Act came into force on 1 May 2026, section 21 'no fault' notices have ended. If a tenant falls into arrears, landlords now need to use a section 8 notice and rely on the rent arrears grounds.
Since the Renters' Rights Act came into force on 1 May 2026, section 21 'no fault' notices have ended. If a tenant falls into arrears, landlords now need to use a section 8 notice and rely on the rent arrears grounds.
The main changes are:
- The mandatory rent arrears ground now needs at least three months' arrears, up from two
- Those arrears must be owed both when notice is served and at the court hearing
- The notice period has doubled from two weeks to four weeks
What is rent guarantee?
Rent guarantee is cover designed to protect your rental income if your tenant stops paying.
Rent guarantee is cover designed to protect your rental income if your tenant stops paying.
Rather than waiting months with no income, a rent guarantee policy can pay the rent you are owed while the situation is resolved. Many policies also include legal expenses cover, which can help with the cost of taking action to recover the property.
It won't stop arrears happening, but it can give you a lot more certainty if they do.
If you would like to know whether rent guarantee could work for your property, we are happy to talk it through.
