Risk Management for the New Normal

In partnership with Pensio Global, the Commercial Rent Guarantee program guarantees existing tenant rent with a primary focus on medical and service related industries.

The commercial real estate sector faces many challenges, and we believe commercial rent guarantees and risk management advice are critical components. Pensio is a growing leader in developing new rent guarantee products designed specifically for residential and commercial landlords. These programs can support REITs, asset managers, property managers, owners, developers, and lenders.

 

Pensio Global - World Insurance Associates LLC

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Commercial Rent Guarantee Risk Factors

Rent guarantees and risk management issues in the commercial leasing context are highly technical, interrelated, and for the most part misunderstood. Risk management in the area of commercial leasing is an area that requires considerable analytical insight on an individual transaction basis.

Depending on the commercial property, there are many risk factors that will affect and limit the type of commercial rent guarantee that can be provided. For example:

  • Factors that limit recovery of rent from a defaulting tenant guaranteed by Pensio
  • Rights to lease subrogation and waivers of subrogation
  • Express and implied common law releases and indemnities from the parties
  • Management liability
  • The damage and destruction provisions of a lease and how they interrelate with the rent guarantee
  • Adverse selection - exclusion of a lease and how they interrelate with the rent guarantee
  • Financial stability - post COVID-19
  • Business viability - post COVID-19

Rent Guarantees for Commercial Landlords

Rent Guarantee

Pensio will co-guarantee your tenant's lease, guaranteeing rent is paid for up to 12 months. Pensio rent guarantee is secured by a performance bond.

Performance Bond

Issued by Rentalis Insurance Company, Inc., a protected cell captive, re-insured by global reinsurers rated AM Best A or Better.

Eviction Services

Pensio's eviction team will evict a tenant in default. Pensio will pay all legal fees and eviction expenses.

To ensure that your business is protected in the New Normal and can remain competitive, contact us today to assess your rental income risks.

 

About Pensio Global

Pensio Global

The Pensio Global Group of Companies is a multi-faceted real estate and credit-risk group that is currently active in 4 countries; Canada, the U.S., the Bahamas, and Panama. Its core business is providing risk management programs in partnership with the stakeholders of residential rental properties, pre-construction condos, multifamily, vacation properties, and commercial properties whereby Pensio makes available guaranteed rent outcomes fully supported by a Performance Bond issued by Rentalis Insurance Company, Inc., a Protected Cell Captive reinsured by reinsurers rated AM Best A or Better. Pensio is a participating member of Rentalis Insurance Company, Inc.

The Pensio Group of Companies includes property managers, risk managers, analytical underwriters, and global real estate experts. All Pensio program based affiliate companies are participating members of Rentalis Insurance Company, Inc.

Learn more at www.pensioglobal.com.

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