Rent Guarantee Terms and Conditions

Late Rent by Tenants

Southern & West will use all reasonable endeavour to ensure the rent is received in a timely manner from the Tenants, however should it be late we will notify you within 48 hours of the due date that it has not been received and will then keep you notified of progress in recovering the arrears. Once the rent is 28 days in arrears we will pass the file to our appointed solicitors and commence proceedings at the earliest date to recover possession. The Rent will be paid in accordance with the Terms laid out later in this document under the Rental Warranty. Southern & West cannot be held responsible for any costs incurred by the Landlord or any third party as a result of late Rent payment by the Tenant.

Termination of This Agreement

Should the Landlord wish to terminate this agreement they may do so by giving not less than one months notice of their intention to do so. In the event Southern & West will refund the premium paid, subject to a deduction for the time for which you have been covered. This will be calculated on a pro-rata basis for the period in which you received cover and will include an additional charge of up to £25.00 to cover the administrative cost of providing the Rental Warranty.

Upon termination of this Agreement any Rental Warranty offered shall immediately cease and Southern & West will not be responsible for any arrears or Legal Action from or after the date of termination regardless of which party terminated the agreement.

Rental Warranty

In the event that a tenant falls into rental arrears and where and we have not been able to secure payment in accordance with our standard arrears process we will pay you such sum or sums equivalent and limited to the amount of any rental arrears that occur during the period of the tenancy monthly in arrears; subject to terms and conditions. Full details of these are available on request; however, a summary of the key points is set out below:

  • A limit of the monthly rent for which the tenant(s) has been assessed by us using our tenant referencing processes and
    procedures and as stated in the tenancy agreement;
  • A maximum of twelve (12) monthly rental payments or until vacant possession has been gained, whichever is the soonest, up to a maximum
    claim value of £60,000;
  • Once vacant possession has been gained we will pay 75% of the monthly rental for up to two (2) months or until the property has been re-let whichever is the sooner subject to receiving instructions from you to re-market the property.
  • An excess which will be the equivalent of one (1) month's rent;
  • And further provided that all such claims for payment of arrears shall be submitted within twelve months of the date of commencement of the tenancy and within 30 days of the first arrears.

We will also pay for any legal costs and expenses that may be incurred:

In resolving disputes between you and your tenant following a breach by the tenant of his obligation under the Tenancy Agreement; to take legal action against the tenant(s) following disputes under the terms and conditions of the tenancy agreement; should your tenants allege that you have not met your obligations under the terms of the tenancy agreement and take legal action against you; to take legal action to evict any unauthorised occupants (squatters) should the property become unlawfully occupied for example between lets.

We will not pay any legal costs and expenses:

  • If the amount in dispute is less than £250
  • For any disputes or events that do not occur during the period of the tenancy agreement and/or Period of Guarantee
  • For any disputes or events when there is not a reasonable chance of successfully recovering damages Incurred without our agreement
  • Relating to the tenants legal costs and or awards made by order of a court settlement or discontinuancy
  • For defending a dispute which arises from or relates to actual or alleged dishonesty, fraud or malicious conduct by you unless the legal action is successfully defended
  • For any disputes where the legal action cannot be brought within the territories of England, Wales and Scotland
  • For any disputes that arise because you have not complied with statutory legislation and other legal requirements related to letting the property

We will also not pay for any interest on the arrears or for any damages, fines or penalties of any nature incurred by you following any legal proceedings. After a claim has been made under the guarantee, you must Notify Southern & West if the tenant makes any payment or part payment of rent direct to you. Not enter into negotiations with the tenant over the dispute without Southern & West written agreement.

You accept that in the event that any payment is made under the terms of this rental protection and legal expenses guarantee, you agree to allow us to have any rights of recovery against the tenants to effect recovery of sums we have paid or appoint such agents as we reasonably shall see fit. Recovery of sums paid out shall be at our discretion and any action taken by us shall be in your name.

You will provide assistance if required in pursuing recovery of our outlay from the tenant(s) or guarantor. If recovery is made from the tenants or their guarantor after taking legal action against them, any payment that is received will be used to reduce our liability after which if any balance remains it will be paid to you.

The most that we will pay you or arrange to be paid as a result of a single event is £60,000.

Payment of rent under this warranty will be 30 days in arrears.

Upon termination of this Agreement any Rental Warranty offered shall immediately cease and Southern & West will not be responsible for any arrears or Legal Action from or after the date of termination regardless of which party terminated the agreement.

If you or anyone acting on your behalf makes any false or fraudulent claim or supports a claim by false or fraudulent document, device or statement you will forfeit all rights under this warranty which will immediately cease.

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