Understanding unpaid rent protection
A simple guide to the conditions, coverage and the situations unpaid rent protection is designed to help with.
Introduction
One of the biggest risks for a landlord is unpaid rent. One month of late payment can quickly turn into several, with serious financial and legal consequences.
Unpaid rent protection exists to reduce this risk. Here is how it works and under what conditions it applies.
How it works
Unpaid rent protection is a mechanism that guarantees the landlord receives their rent, even if the tenant does not pay. In case of payment default, the coverage takes over according to the conditions defined in the contract.
The conditions to meet
To benefit from this protection, certain conditions must be met:
- The tenant must have passed a verification process (tenant screening)
- The lease must comply with the platform requirements
- Payments must go through the designated system
What the protection covers
The coverage is designed for situations where a verified tenant stops paying rent. It is not an all-risk insurance: it does not cover property damage, personal disputes or situations where the lease has not been respected.
Why this matters for landlords
Accepting a tenant with only one month of advance rent may seem risky. But with a verified tenant and unpaid rent protection, the risk is managed. This is what allows Citu to offer reduced upfront conditions while protecting landlords interests.
To learn more about the protection available through Citu, visit citu.ci or contact our team.
