Tenancy Bond Insurance
For Landlords
Tenancy Bond insurance is a safer financial instrument for you the Landlord instead of relying on a Bank Guarantee. As reported in the Australian Financial Review on Dec 13, 2021, the headline read “Two-thirds of SMEs hit by a lost, stolen or fraudulent bank guarantee.”
The six AA/A rated global insurers behind each Tenancy Bond insurance policy are bigger than the big four Australian banks combined, so you have peace of mind in the security of policy paying a claim.
Tenancy Bond insurance offers your Tenants ‘back-to-back’ security and gives you a right to make a claim. A valid breach inline with a Lease Agreement gives you the right to make a claim against the tenancy Bond. Payments are made to you the Landlord within three days of lodging your Letter of Demand.
As a Landlord, using Tenancy Bond insurance can be an incentive to attract new or retain exisiting Tenants.
Bank Guarantee Comparison
Landlord | Lease Bond Insurance | Bank Guarantee |
|---|---|---|
Payable only to you the Landlord | ✓ | ✓ |
Product for Tenant attraction and retention | ✓ | ✗ |
Digitisation of entire lease security portfolio | ✓ | ✗ |
Supports fit-outs incentive | ✓ | ✗ |
Transferable when asset is sold | ✓ | ✗ |
Instantaneous claims and cancellations functionality | ✓ | ✗ |
Value increases automatically with rent adjustments | ✓ | ✗ |
Legally binding, unconditional, on-demand security | ✓ | ✓ |
Simplfying the administration process for landlords | Lease Bond Insurance | Bank Guarantee |
|---|---|---|
Provides multi-party benefits | ✓ | ✗ |
Digital end-to-end solution | ✓ | ✗ |
All processes managed by an online portal | ✓ | ✗ |
Automated notification in advance of expiry | ✓ | ✗ |
Lease guarantee details accessible 24x7 | ✓ | ✗ |
Industry best practice security and audit logging | ✓ | ✗ |
