The average eviction will cost a landlord about $10,000 and 40 hours of work. NaborlyShield gives landlords peace of mind knowing that they will never miss a rental payment or have to go through the eviction process.
What is NaborlyShield?
Naborly offers NaborlyShield to landlords, agents and property managers who want to eliminate the risk of the cost, time and stress associated with an eviction. After you get a Naborly Report back, you will see a NaborlyShield Quote that is correlated to a tenant’s Naborly Score. If you decide to purchase NaborlyShield and your tenant defaults on rent, you just need to email Naborly and Naborly will pay you rent for up to 6 months, cover property damage, and give you 1 month’s rent to re-lease the unit while processing the entire eviction on your behalf.
Why should I purchase NaborlyShield?
The average eviction costs about $10,000 plus 40 hours of work between filing and serving documents, and appearing before the Landlord and Tenant board. More than 50% of evictions occur not because a tenant wasn’t screened properly, but rather, a tenant’s circumstances changed after moving into the property, like losing their job, having to unexpectedly repair their car, etc. If you want to have the peace of mind that you will never have to go through the stress, time and cost of an eviction, NaborlyShield is right for you.
How do I purchase NaborlyShield?
Click on the “View NaborlyShield” button beside a completed report on your application dashboard. Your tenant must have been screened by Naborly before you can purchase NaborlyShield.
What does NaborlyShield cover?
NaborlyShield protects landlords from tenants defaulting on rent or not giving required notice before vacating the property. Typically, if a tenant doesn’t pay their rent, a landlord will have to navigate the eviction process through the Landlord and Tenant board. When you purchase NaborlyShield, you will receive from Naborly:
- Up to a maximum of 6 month’s rent while you are not receiving rent from your tenant
- Naborly processes your eviction (up to a maximum of $2,500 in services)
- Naborly compensates you for re-renting your rental unit (up to a maximum of 1 month’s rent)
- Naborly compensates you for property damage caused by the tenant (up to a maximum of $2,000)
There is a 10% deductible on any damages incurred.
What is the average cost of NaborlyShield?
The average cost of NaborlyShield is approximately 3% of the monthly rent and varies depending on the tenant’s Naborly score. The higher the Naborly score, the lower the monthly fee and vice versa.
How do I submit a claim to Naborly if my tenant defaults on rent or does not give the required notice before vacating the property?
In the event that your tenant defaults on rent or does not give required notice before vacating the property, email email@example.com and Naborly will begin processing your claim.
Once I submit a claim to Naborly, what is the process?
You will receive an email back from Naborly with a NaborlyShield Obligations Claim Form to complete. Once this is submitted back from Naborly, you will receive payment within 24 hours equivalent to 1 month’s rent minus the 10% deductible and the outstanding monthly payments owed to Naborly.
Are there any exclusions?
- Evictions that are for reasons other than non-payment of rent (damages to property or other tenants, illegal acts on property, landlord moving into property, etc.)
- Roommates that a landlord has not purchased NaborlyShield on
- Death of tenant
- Losses covered by other insurance (property damage that would be covered by their homeowner’s insurance)
- Tenant withholding rent due to the landlord's breach of the lease (landlord has not maintained a habitable environment as per the lease)
- Claims within the first 28 days of purchasing NaborlyShield
If my tenant defaults on rent and I make a claim to Naborly, will Naborly immediately begin the eviction process?
No. Naborly will first contact the tenant to understand their situation and determine the best path forward. It is common for tenants to default on rent due to an unexpected expense or loss of employment income. In these situations, evictions can often cause a downward spiral of poverty for tenants who take high interest loans from predatory lenders or have to pull together another 2 months of rent to move into a new rental. If Naborly determines it to be feasible, a loan will be offered to the tenant allowing them to get back on track for the next month’s rent. This benefits the tenant but also the landlord, who avoids the hassle of an eviction for a tenant who has only had a temporary financial setback.
If I have three roommates applying to my property, do I purchase NaborlyShield for each of them individually?
Yes. Each individual requires a separate NaborlyShield plan.
If Naborly has to evict my tenant, do I need to be involved in the process at all?
Naborly will require your signature on eviction documents, may need to collect information from you, and/or have you appear in front of the rental/landlord/tenant board to process the eviction.
Will I have to re-lease my property once Naborly has evicted the tenant or does Naborly do this?
Naborly does not re-lease your property once an eviction has been executed; however, we provide up to 1 month’s rent to cover this cost. Most landlords hire a real estate agent to release their rental. A real estate agent’s fee is 1 month’s rent so Naborly will reimburse you for this cost.
Do all tenants I screen qualify for me to purchase NaborlyShield?
No. Naborly does not offer NaborlyShield if one of the following is true:
- If the Tenant’s Cash Flow (Rent-To-Income + Debt-To-Income + Basic-Living-Expense-To-Income) is greater than 120% of their share of rent
- If the Tenant’s Naborly Score is less than 550
- If the Tenant has provided identity documents that cannot be verified by Naborly
- If the Tenant has provided any income documents that cannot be verified by Naborly
- If the Tenant has any Collections records on their credit report
- If the Tenant has any Judgement records on their credit report
- If the Tenancy period is less than 2 months
Can I get NaborlyShield for a tenant who doesn’t have a credit file?
Yes. A large proportion of the renting population do not have any credit history. This group of credit-invisible renters are often young or newly arrived in the country and have yet to establish any credit history or have their overseas credit data transferred.
If I am signing a lease a tenant that is less than 1 year, can I still buy NaborlyShield?
Yes. You can purchase NaborlyShield for a lease term as short as 2 months.
Can I purchase NaborlyShield for a tenant who has not been screened through Naborly?
Not yet. Naborly will be launching a version of NaborlyShield in the near future for landlords to purchase for tenants who have not been screened through Naborly.
Can I purchase NaborlyShield for a tenant who has already moved into my property?
Not yet. Naborly will be a version of NaborlyShield in the near future for landlords to purchase for tenants who have been screened more than 30 days ago.
After year 1 of the lease, my lease becomes month-month automatically, if I want to renew with Naborly do I pay month to month? Do I get the same benefit?
NaborlyShield automatically renews after the first year unless you provide written notice to Naborly at least 30 days prior to the end of the term. Although your lease will now be month to month, it could still take 4-6 months to process an eviction and NaborlyShield will cover you for the entire year. If the tenant provides the required notice and leaves after 15 months (for example), you will still continue to pay the monthly NaborlyShield fee until the end of the 2nd term.