When investing in furnished rental real estate, the goal is typically to generate a stable income while preserving the value of your property. Even though unpaid rents are much less common in furnished rentals (typically with fixed-term leases, often involving foreigners with defined budgets), there are still risks involved. This is where Rent Guarantee Insurance (RGI), or GLI in French, comes in as an essential lifeline for landlords. GLI provides invaluable protection by ensuring rent payment, even in case of tenant default. In this article, we will explore in detail what GLI is, its benefits, and why Lodgis' GLI is a smart choice to secure your furnished rental income.
Rent Guarantee Insurance, or GLI, is an essential tool for landlords, whether they have opted for furnished or unfurnished rentals. It serves as insurance that protects the property owner against the risks associated with unpaid rents and rental disputes. Unlike a simple security deposit, GLI offers strong financial protection in case the tenant fails to pay rent.
One of the most obvious advantages of GLI is that it provides you with invaluable protection against unpaid rents. In the world of real estate leasing, tenants may encounter sudden financial difficulties or simply refuse to pay. GLI steps in during these situations, guaranteeing that you will receive the agreed-upon rent, even if your tenant cannot pay. This allows you to maintain a regular cash flow and avoid financial disruptions.
To learn more about the risk of unpaid rents, read our article "How to Prevent Unpaid Rent in Furnished Rentals?".
GLI goes beyond protecting against unpaid rents. It also covers the costs of legal proceedings and eviction. In case of a dispute with a tenant, legal procedure expenses can quickly add up. GLI covers these expenses, saving you from additional financial worries and allowing you to resolve conflicts efficiently and fairly.
As a landlord, you have invested time and money in your rental property. GLI significantly reduces your exposure to financial risks. You do not have to fear unpaid rents that could jeopardize your investment. This provides you with valuable peace of mind and allows you to manage your real estate portfolio with confidence.
One of the key advantages of Lodgis' GLI is that it guarantees a stable rental income in case of payment default (which is rare in furnished rentals) and, most importantly, in case of rent payment delay by the tenant!
Thus, Lodgis landlords are assured of receiving their rent every month on the same date, starting from the first day of payment delay. This is a significant security advantage for property investors who have taken out a loan to finance their rental investment and rely on rental income to cover their monthly payments.
Another advantage of Lodgis' Rent Guarantee Insurance is that it applies to all Lodgis tenants without additional selection constraints. Our agency has in-depth knowledge of the furnished rental market in France, enabling us to offer strong tenant applications.
Lodgis' Rent Guarantee Insurance is the only GLI on the market accessible without exclusive rental or management conditions for the property in question. All landlords who entrust us with the rental or even the management of their property can benefit from Lodgis' GLI to safeguard against potential delays or rent defaults.
Lodgis' Rent Guarantee Insurance is one of the most affordable options on the market: only 3% inclusive of taxes of the rent...
Whether you are already a Lodgis landlord or not, subscribing to Lodgis' GLI is simple: you just need to request it from your Lodgis Property Advisor.
In conclusion, Lodgis' Ducroire GLI is the ideal solution for furnished rental property landlords who want to secure their rental income and gain peace of mind, especially when the rental investment is financed by a bank loan. Don't take unnecessary risks; protect your real estate investments with Lodgis' GLI. Contact us today to learn more.
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