All tenants are susceptible to unexpected financial strains, sometimes making them delinquent on their rent. When a good tenant falls on hard times, this can present a problem for property owners who count on their rental income to pay the mortgage. A rent guarantee program will help reduce the risks associated with renting your property, such as when a tenant stops paying rent or prematurely ends their lease.
Comparing rent guarantee providers for landlords in Canada
Choosing a rent guarantee program that fits your needs is essential to ensure your success as a landlord. Here’s a side-by-side comparison of rent guarantee programs provided by SingleKey and its competitors.
A closer look at rent guarantee providers in Canada
Rent guarantee programs offer valuable coverage for landlords. Here’s a closer look at each rent guarantee provider in Canada.
SingleKey protects landlords against the inherent perils of renting. Our services include Tenant Reports, Rent Collection, and Rent Guarantee. Here’s how SingleKey’s Rent Guarantee Program works:
- Rental income guarantee: In the event of a delinquency, SingleKey will cover up to 12 months of rent (up to $60,000).
- Lease break protection: Guaranteed 30 days of rent paid if your tenant leaves without notice.
- Property damage protection: For tenant-caused damages, whether malicious or negligent, get up to $10,000 CAD reimbursed by SingleKey.
- Legal support and eviction resolution: Our paralegal team will handle everything when eviction is necessary, and legal fees are included up to $1,500 CAD.
- Automated rent collection: Set up automated monthly payments with your tenants. As a bonus, we report all rental payments to the credit bureau, which incentivizes on-time payments and helps build tenants’ credit scores.
Tenantcube aids the rental process by offering credit reports, rent collection, and a rent guarantee program. Here’s what Tenantcube’s rent guarantee program offers:
- Rental income guarantee: Guaranteed rental income for up to 12 months or $60,000 per lease.
- Lease break protection: Tentantcube does not cover costs for lease breaks.
- Property damage protection: Up to $10,000 is reimbursed for repairs of tenant-caused malicious damages (vandalism or malicious mischief).
- Eviction support: Pays up to $1,500 to reimburse for eviction legal fees.
- Automated rent collection: Automatically collects the rent. Tenantcube does not incentivize payment by reporting to the credit bureau.
Buttonwood Property Management
Buttonwood offers residential property management, residential property rental, and commercial and rental property management. Here’s a breakdown of their rent guarantee program and how it compares with other programs:
- Rental income guarantee: Will compensate for monthly rent payments for up to six months.
- Lease break protection: Lease breaks are not covered.
- Property damage protection: Property damage is not covered.
- Eviction support: Eviction costs are covered if the landlord-tenant agreement is not resolved through mediation.
- Rent collection: Collects monthly rent payments. Does not incentivize payment by reporting to the credit bureau.
Royal York Property Management
Royal York Property Management manages properties by providing services to landlords and tenants, including screening, rental income guarantee, property damage protection, and eviction guidance. Here’s what they offer in their rent guarantee program:
- Rental income guarantee: The rental income guarantee includes 12 months of rental compensation.
- Lease break protection: Does not cover costs on lease breaks.
- Property damage protection: Covers up to $30,000 in property damage due to tenant’s negligence.
- Eviction support: Royal York Property Management will advise on eviction procedures.
- Rent collection: Rental income is deposited into the landlord’s bank account every month.
Rentatee manages properties and coordinates maintenance needs. Here’s what you’ll get from their rent guarantee program:
- Rental income guarantee: Their service covers rental income up to $60,000.
- Lease break protection: One month’s rent is covered for an abandoned tenancy.
- Property damage protection: Their property protection service covers damages up to $10,000.
- Eviction support: Rentatee covers up to $1,500 in eviction and legal coverage.
- Rent collection: Rent collection is included as a service.
How rent guarantee programs help residential landlords
SingleKey’s Rent Guarantee Program protects a landlord’s rental income. When a tenant stops paying rent, it can cause a ripple effect that can negatively impact a property owner’s time and finances. The benefits of a rent guarantee program are the protection it offers landlords, including:
- Unpaid rent reimbursement
- Property damage protection
- Financial protection when tenants break their lease
- Legal support and limited legal fee coverage through the eviction process
Unpaid rent reimbursement
SingleKey’s Rent Guarantee Program covers up to 12 months of rent (a maximum of $60,000). Eligible homeowners can participate in the program by committing 5 percent of their monthly rent (paid annually).
Once you know the tenant can’t pay their rent, always try to end the tenancy amicably. Eviction can be an arduous, drawn-out process. Ask them if they would like to break the fixed-term lease earlier with your permission.
Property damage protection
If a tenant causes property damage, landlords can notify SingleKey. Under our property damage protection, landlords will be reimbursed up to $10,000 for damages caused by a tenant.
Financial protection when tenants break their lease
Property owners will have peace of mind that they can access financial protection with the Rent Guarantee Program if a tenant breaks the terms of their lease. SingleKey provides 30 days of rent guarantee in this case.
Legal coverage through the eviction process
Eviction is usually the last resort. When you’re owed several months of rental payments and are responsible for making mortgage payments, expenses can start adding up. The average eviction costs can amount to thousands of dollars, depending on your province. As reported by the Vancouver Sun, evictions are estimated at 10.5 percent in B.C., 6.1 percent in Ontario, 4.8 percent in Quebec, and 3.1 percent in Alberta over five years. SingleKey will cover up to $1,500 in legal costs related to an eviction and have their paralegal team guide you through the process.
What makes SingleKey’s Rent Guarantee Program stand out
SingleKey is transparent about its fees and services. What you see is what you get. Outsourcing property management services usually comes with a hefty price tag, but with our Rent Guarantee Program, you only pay 5 percent of your monthly rental income.
The most comprehensive rental protection
SingleKey guarantees a rental income for 12 months if your tenant is delinquent. Alternatively, many programs will only cover six months of payments.
The program also includes extensive Tenant Screening and Rent Automation services:
- Tenant Report: Our report goes beyond a simple credit score. We provide the big picture on tenants so landlords can make educated decisions, and there are no surprises regarding how reliable a tenant will be.
- Rent Collection: Easily automate the collection of your tenant’s rent. We also report the monthly payment to help tenants build credit and encourage them to make timely payments.
Backed by a global reinsurer and powered by experience
Founded in 2017 by innovative and experienced professionals, SingleKey is supported by an established global reinsurer and is Canada’s first Rent Guarantee provider. We understand the liabilities landlords face every day and have crafted the program from the ground up while actively managing rental risks through the COVID-19 pandemic. SingleKey also has access to a legal team to walk landlords through the daunting eviction process. We’ll handle everything from start to finish.
FAQ: What is a rent guarantee program?
If a tenant misses a rent payment, falls so behind on rent with no way of catching up, or refuses to move and needs to be evicted, a rent guarantee program can come to a landlord’s rescue by guaranteeing up to 12 months rent, paying for some eviction costs, and even paying for property damage caused by the tenant.
Yes. SingleKey has one of the most comprehensive rent guarantee programs available. Property owners will have guaranteed rental income for up to 12 months, coverage for property damage caused by a tenant, eviction support, and some compensation for eviction legal fees.
We have no hidden fees. The program fee is 5 percent of the monthly rent, charged annually. The cost is 5.5 percent of the monthly rent if you pay monthly for the program. We can charge your credit card or deduct the fee when we process your monthly rent payments.
Our final thoughts
SingleKey’s approach to mitigating risks associated with renting properties is backed by years of experience. Not only do we have the most comprehensive rent guarantee program, but we also help property owners find their ideal tenants. Our full-service offerings include:
- Screening tenants with Tenant Reports
- Offering rent automation
- Guaranteeing rental income
- Mitigating financial risk
- Facilitating the legal process of eviction
- Giving financial support when a tenant damages your property