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Guarantee Programs

Lease Co-Guarantees that pays the Rent to Landlords

Single Family, Multi-family, Student and Commercial

One to unlimited rental units

What do we Guarantee and Pay?

Loss of Rent

We will pay rent on behalf of the tenant who has defaulted on their rent for up to 12 months and $60,000 per unit each year

Malicious Damage

We will pay for Malicious Damage Court Orders on behalf of a tenant who has defaulted on their payment up to  $10,000 per unit each year

Eviction Costs

We will reimburse legal fees, court fees, and service fees for evictions up to $1,500 per unit each year if a tenant has been served an eviction notice

How does it Work?

Registering a Property

  • email info@pensioglobal.com

  • register one or unlimited properties

  • review the lease-co-guarantee agreement

  • guarantees your existing or new tenancy contracts

  • guarantees qualified existing and new tenants

  • you must register all rental units listed at any one rental property address

Loss of Rent

  • your tenant has to have a legal and valid tenancy contract

  • when the tenant defaults on rent email us a Notice of Default

  • first unpaid rent reimbursement will be paid by Pensio to you within 30 days of our receiving the Notice of Default and supporting documentation (completed online)

  • you are required to serve a valid Notice of Eviction on the tenant within the first 30 days

  • forward us the valid Notice of Eviction and email us monthly Notice of Defaults if the tenant is not evicted or if the tenant remains in rent default

  • we will pay your tenant rent default for up to a total of 12 months up to a maximum amount

  • if the tenant vacates or abandons your rental unit, we will pay up to a maximum of 2 months rent if it remains vacant

Malicious Damage

  • if your tenant causes damage to your rental property, you have filed a claim with a court or tenant tribunal, and the court or tribunal has ordered the tenant to pay for the malicious tenant damage caused to your rental unit, then we will pay the order if the tenant does not pay

  • you will need to email us a Notice of Default and include a copy of the court or tribunal order

  • we do not pay the first $1,000

  • we pay a maximum of $10,000 

Eviction Costs

  • if you have served a valid Notice of Eviction within the first 30 days of your tenant default we will reimburse you up to $1,500 for third-party legal fees, service fees and court fees if you have successfully evicted the tenant within 120 days of your valid notice of service, or the tenant has resumed rent payments, paid the rent arrears, or has paid the unpaid malicious tenant damage court order

Program Fee (annual or monthly payment options)

  • 3.0% of gross annual rent paid upfront. ie: monthly rent is $1,200 (gross annual rent $14,400): the program fee is $432

  • 3.5% of gross annual rent if you pay monthly.ie: monthly rent is $1,200 (gross annual rent is $14,400) the monthly program fee is $42

How does it Work?

Risk Management

  • Pensio provides a rental market analysis for each proposed property supported by rental income guarantees

  • Pensio provides a full risk analysis for each property

Property Management

  • Pensio may approve a developer or owner property manager, or Pensio will provide 5-year turn-key property management

  • if developer or owner property manager, tenants will be required to meet Pensio minimum tenant qualification criteria

  • Pensio charges an agreed property management fee in addition to a rental income guarantee program fee 

  • Pensio requires the sole unfettered right to rent and proxy voting rights for any condominium or homeownership registered property during the term of the rental income guarantee 

5-year Rental Income Guarantee (vacant or tenanted)

  • pays guaranteed rental income regardless of whether the unit is vacant or tenanted for 60 months, 90 days after the date of occupancy of all units in a project or acquisition 

Malicious Tenant Damage Reimbursement

  • reimburses all unpaid tenant malicious damage in the event the tenant fails to pay

  • does not pay for normal rental property wear and tear

Eviction Costs

  • pays all eviction fees

Program Fee

  • provided to developer or owner following property or project risk and market analysis completed by Pensio

Rental Income Guarantees for Property Developers and Lenders

Designed to support lenders and their developer clients against absorption risk by eliminating variation or uncertainty in future income through a straight-line guaranteed return, backed by a Rental Income Performance Bond.

Pre-construction and completed short term extended stay residential resort properties, multi-family apartments, condominium developments, student living rental properties and senior living care residences. Four to unlimited residential and commercial rental units.

Mitigating and Repositioning Assets?

Multifamily

Lender concerns are mitigated through rental income guarantee:

  • Project Absorption (debt service and loan interest costs, ongoing op-ex during lease-up)

  • Rental market stability

  • Project lease-up and stabilization risk

  • Recourse for the lender (the lender is a named obligee)

  • Debt service coverage ratio

Condominium

Repositioning all or an allocation of unit sales to investor purchasers instead of end-users:

  • Adjusting prices on a cap rate basis can increase unit prices and overall returns

  • Increased sales velocity

  • The certainty that if any units remain unsold, they can earn a certain income through the rental income guarantee program, post-occupancy

Pay Your Rent Program that pays the Rent to Landlords for Tenants who Lose their Job

Single Family Residential, Multifamily Residential, Student Rental

One to unlimited residential rental units

We Pay 3 Months Rent For Tenant Job Loss

Pay Your Rent Program For Tenant Job Loss

It's never certain that a tenant with a great credit history won't lose their job. Pensio Tenants offers Lease-Co-guarantees to both tenants and landlords to remove the risk of a tenant losing a job and being unable to pay rent.

 

Pensio Tenants Lease Co-Guarantee can cost as little as $1 a day and will pay the rent directly to the landlord for up to 3 months if the tenant:

  • is a new or existing tenant

  • involuntarily lost their employment

  • has been approved for employment insurance

  • has worked a minimum of 24 weeks

How does it Work?

Register a Tenant

  • the tenant or landlord "rental property owner" can register tenant for tenant job lease co-guarantee program

  • visit www.pensiotenants.ca (Canada) or www.pensiotenants.com (USA) to register and complete know your client disclosure

  • register one or unlimited tenants

  • review the tenant job loss lease-co-guarantee agreement

  • register new or existing tenants

Qualifying Tenant Employment

  • the tenant has executed a legal and valid lease agreement

  • the tenant has qualified for state or provincial  employment benefits

  • the tenant has a record of employment and/or a notice of unemployment directly provided by their former employer that: (i) indicates the cause of loss of employment; (ii) confirms the tenant has worked a minimum of an average of (24) hours per week for the past (26) weeks up to and including (30) days after registration into this program before involuntary job loss; and (iii) indicates the date of unemployment/dismissal

  • tenant remains unemployed

  • the tenant cannot pay their rent

Job Loss Rent Payment

  • we will pay up to (3) months rent directly to the landlord if the qualifying tenant remains unemployed and the landlord and tenant have emailed us a Notice of Pending Default for each month the tenant remains unemployed

  • rent is paid only to the landlord

Program Fee (annual or monthly payment options)

  • 2.5% of gross annual rent paid monthly. ie: monthly rent is $1,200 (gross annual rent is $14,400) the monthly program fee is $30

Pensio's Performance Secured by a Rental Income Performance Bond 

Lease Co-Guarantee or Management contract.

Surety

Rentalis Insurance Company, Inc., guarantees the Principal's lease co-guarantee or management contract performance covering (loss of rent, loss of malicious tenant damage reimbursements and eviction costs reimbursements) up to the Penal Sum stated in the Surety (Rental Income Performance Bond)

Surety

Principal

Pensio (Principal)  as a Participating Member of Rentalis Insurance Company, Inc., self procured the Surety (Rental Income Performance Bond) to secure their performance to you (the Obligee) (ultimately the Principal is  financially responsible for loss of rent, loss of malicious tenant damage reimbursement and loss of eviction reimbursement)

Obligee

You (Obligee) or your bank (Co-Obligee)  have required that the Principal self procure a Surety (Rental Income Performance Bond) to secure the Principals performance regarding the lease co-guarantee or management contract for (loss of rent, malicious tenant damage reimbursement and eviction costs reimbursements)

Pensio is a Participating Member of Rentalis Insurance Company, Inc., a Protected Cell Captive reinsured by Global Reinsurers rated AM Best A- Excellent or better. A surety is issued to the Principal through licensed insurance brokers in the country the property is located.

How it Works

If a bonded Principal fails to comply with the services and terms and conditions of the Principal's rental income guarantee agreement agreed between the Principal and Obligee, the Obligee can make a claim to the Surety.  The Surety is financially obliged to cover the rental income guarantee, malicious damage guarantee reimbursement, if applicable, or eviction costs reimbursement if applicable, up to the penal sum stated in the rental income performance bond.

If the Obligee fails to meet the terms and conditions of the Principal's rental income guarantee agreement the Surety shall not be obligated to pay a demand or claim.

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