The aim of Rent Waiver is to protect tenants from short term financial shock whilst also providing agents with a reasonable opportunity to make a fair margin. What’s more, Rent Waiver does not impact on an agents ability to sell a legal expense rent guarantee product to the landlord. The two sit perfectly side by side.
Given that Rent Waiver is non-insurance, neither you nor your staff have to be FCA authorised to offer it to tenants within an AST.
What Is Rent Waiver?
Rent Waiver is a contractual promise within the AST from you (on behalf of the landlord) to write-off one month’s rent if the tenant loses their job or if they are signed off work. It continues to waive rent for up to 6 months with nothing to repay by the tenant, and with the tenant having not missed any payments. In short, it gives the tenant breathing space to sort their world out…
Behind that AST promise is a B2B insurance which reimburses you for every rent payment that is waived. The trigger events for the AST waiver and B2B claim are matched. No rent is waived unless the B2B insurance reimburses you by the same amount.
The end result is that the tenant has breathing space whilst protecting their credit rating; your landlord gets their rent when expected and you get your management fee.
More Questions? Here’s our Tenant Q&A
Q: What is Rent Waiver?
Rent Waiver is a term of your Assured Shorthold Tenancy Agreement (“AST”) whereby we (the agent), on behalf of the Landlord, agrees to waive your regular monthly rent as shown in your Tenancy Agreement if a Rent Waiver event occurs.
Q: What events are covered?
Being made Redundant or being signed off work by your Doctor or being Hospitalised are the main causes for people to fall into arrears with their rent. We offer you peace of mind and security that should one of those events occur to you, that Your Rent will be waived.
Q: How long does the Rent Waiver last?
On behalf of your Landlord, we will waive Your Rent for up to 6 months for Accident / Sickness or Redundancy or Hospitalisation. Exclusions do apply so please read the Rent Waiver Addendum.
Q: Do I have to repay any payment that has been waived?
No. Rent Waiver is our promise, on behalf of your Landlord, to you to waive Your Rent if you suffer from a prescribed event. You do not have to repay us if we have agreed to waive Your Rent.
Q: Is my credit rating affected if I have a Rent Waiver?
No. With Rent Waiver we are agreeing to waive Your Rent. You have not failed to meet a payment that is due so your credit rating is not affected.
Q: Can I Opt-In or Opt-Out of Rent Waiver whenever I like?
You can Opt-Out of the Rent Waiver at any time by giving 30 days’ notice. If you Opt-Out of the Rent Waiver, or do not choose the Rent Waiver when first offered, you will not be able to Opt-In to Rent Waiver until your AST term ends.
Q: How much does Rent Waiver cost?
The cost of the Rent Waiver is determined as a percentage of Your Rent. i.e. if Your Rent is £1000 and the Rent Waiver is 3%, the costs of the Rent Waiver will be £30 per month, around £1.00 per day for total peace of mind.
Q: Is Rent Waiver insurance?
No. Rent Waiver is a contractual promise from us, on behalf of your Landlord, to you to forego collecting Your Rent that would otherwise fall due under the terms of your AST if a Rent Waiver event occurs.
Q: How long do I have to have suffered from a Rent Waiver event before I can request a Rent Waiver?
The criteria can be whatever the Letting Agent wishes for their Waiver Promise, but generally speaking, the one would expect 30 days for Redundancy or Accident / Sickness and 7 days for Hospitalisation.
Q: Are there any exclusions as to when I can apply for a Rent Waiver?
Yes. There are some exclusions. Most exclusions are if you are responsible for the Rent Waiver event occurring, i.e. if you are fired from work for misconduct, or if an accident is the result of alcohol or drug abuse.
