Non-payment of rent, property damage, and legal fees due to eviction can quickly cut into your rental income. Here’s a glimpse into how much time and money a delinquent tenant can actually cost you:
- The average cost to evict a tenant is $12,000. This includes lost rent payments, legal expenses, costs to find a replacement tenant, and potential repairs for property damage.
- The average cost of legal fees for a tenancy hearing is $1,250. To receive an order to evict your tenant, you’ll need to pay court filing fees, hire a paralegal to handle the paperwork and hearing, and in some places, a Sheriff to execute the eviction on your behalf.
- Removing a tenant from a property takes between four to eight months. Getting your case heard in court takes time. Factor in the decision process, court delays, and the time it takes to enforce the eviction order, and you could be looking at months of lost rental income as you move through each phase of the eviction.
This is where coverage under SingleKey’s Rent Guarantee Program can protect you and your real estate investments. Read on to find out how to guarantee your rent and manage rental property risks while sleeping easy at night.
What is SingleKey’s Rent Guarantee Program?
The Rent Guarantee Program gives you access to financial and legal resources to help you protect your rental income. These benefits include coverage for missed rent payments, lease break and property damage protection, and more.
Rental income guarantee
A tenant who suddenly stops paying is every landlord’s worst nightmare. Unfortunately, evicting them from your property or getting a court judgment to collect unpaid rent can take months. Meanwhile, you’re booking a loss each month that passes by. The Rent Guarantee Program will cover your lost rental income for up to 12 months (up to $60,000).
Lease break protection
If your tenant unexpectedly breaks their lease without giving proper notice, you’ll receive 30 days of rent paid.
Property damage protection
Most landlords rely on a security deposit to pay for damage to their rental unit. However, it may not be enough to cover extensive damage caused by a tenant. Under the Rent Guarantee Program, you’ll receive compensation for up to $10,000 to fix your property.
Depending on your situation, you may need to evict your tenant, which means taking your case to court. SingleKey will cover you for up to $1,500 in legal fees ($2,000 in the U.S.) and provide access to a paralegal team to handle your case from start to finish.
Automated rent collection
Single Key’s Rent Collection platform lets you set up pre-authorized deposits with your tenant. Not only will you be able to track deposits in real time, but you’ll also help build up your tenant’s credit score as SingleKey reports rent payments to Equifax. Automated rent collection is free when you sign up for the Rent Guarantee Program.
Note: Rent Collection is only available to Canadian Rent Guarantee customers.
Credit and background check
With proper screening, you can boost your chance of finding high-quality tenants, which minimizes the risk of missed rent payments, property damage, and other problems down the road. This is why the Rent Guarantee Program includes two free Tenant Reports. Landlords can take advantage of SingleKey’s comprehensive credit report and background check, which has all the information you need to screen potential renters confidently.
How do I qualify for the Rent Guarantee Program?
Tenants qualify for coverage under the Rent Guarantee Program if they have:
- No bankruptcy or previous eviction listed on their credit report in the last three years
- At least one employed member in the household
- A rent-to-gross household income ratio no higher than 45%
Both new tenants and those already mid-way through their lease are eligible as long as they meet the criteria. The only additional qualification requirement for existing tenants is proof of past on-time rent payments.
Owner and property requirements
As a landlord, you qualify for coverage under the Rent Guarantee Program if you can provide proof of the following:
- Your property is located in Canada (except Quebec) or the U.S.
- You have a valid lease signed with your tenant
- To claim property damage, you must have a move-in checklist or pre-inspection pictures that show the condition of the unit
How do I get started with the Rent Guarantee Program?
Registering for SingleKey’s Rent Guarantee is easy: just book a call with our Rent Guarantee team. They’ll walk you through the process.
What landlords are saying about the Rent Guarantee Program
Our final thoughts
Like any business, a rental property comes with its share of risks. A tenant failing to pay their rent, breaking their lease early, or damaging your property can lead to thousands of dollars in out-of-pocket costs that threaten your rental income. While you can’t predict if and when such risks occur, you can successfully manage them with SingleKey’s Rent Guarantee. When disaster strikes, you’ll have the financial and legal support to help keep your rental business thriving.
Thousands of landlords trust SingleKey to help reduce the risks of renting. Learn how you can protect your rental income with the Rent Guarantee Program today.