10 Year Rental Guarantee
Question: what if my property becomes vacant and I can't find a tenant?

Answer: guarantee your rent for 10 years with a Leaseback!
One of our most significant concerns when we began our respective investment journey’s was vacancies.
What would be the financial implication if we had no tenants for a period of time? How long could we afford to fund the empty property before we suffered financially?
In retrospect, it was a concern that held no foundation. We came to learn that in most instances a well researched and well positioned property will not suffer extended vacancy.
However, life happens and things can change over time. It may be unruly neighbours, or a newer development with more amenities in a more desirable location. Perhaps even new infrastructure is impacting upon the desirability of your property.
Though these are rare instances, we do recognise extended vacancy is a fear that may be holding some investors back.
We have therefore specifically sourced a product to alleviate this concern.
Underwritten by one of the largest insurance companies in Australia, the 10 year leaseback works very similar to an insurance policy.
Prior to the new property going under contract we require the Purchaser to advise if they would like to take advantage of the Leaseback. We then confirm with the Underwriter that the property will still qualify after settlement.
Protection comes into effect after property settlement, and after the first tenant moves in.
At this time the “premium” will be finalised as it is calculated on a percentage of the weekly rent achieved. You, the Owner, will then be eligible for the full rent that the current tenant is paying for the 10 year term irrespective of whether the property is tenanted or not. As the rent increases during these 10 years, so will the premium by percentage.
Your rent will be paid directly into your bank account by the underwriter on a fortnightly or monthly basis.
This offer is optional, and can only be taken out on new properties. The policy may be cancelled at any time and is also fully transferable if you decide to sell the property with the next owners wanting to retain the arrangement.
The property must meet specific criteria to be eligible. If you want to take advantage of this policy, we will notify the underwriter before finance unconditional for an approval in principle.
- The underwriter is technically your tenant, so, therefore, are “subletting” to your tenant.
- The underwriter must first approve your managing agent or onsite manager. This is for everyone's protection and ensures that they are suitably experienced and licensed.
- We always strongly recommend holding landlords protection insurance, and if you take out the 10-year leaseback it is a condition that you also take out landlords protection insurance with the underwriter of the rental guarantee.
Conditions

TIPP are here to help
Like to know more?
If you would like further information on the finer details such as pricing, terms and conditions, or even how it could work for you, contact us now on 1800 00 8477 or submit a query on the button below.