Guaranteed Rent: A guide for Landlords
Buying a home may be a dream for various people but renting is the reality for many others. Guaranteed rent or rent to rent is the most commonly known term which is used by landlords and property management companies widely,
What is ‘Guaranteed rent’ or ‘rent to rent? Guaranteed rent is where the company’s local authority or individual rents a property of a property owner and the property owner receives a guaranteed rental income for an agreed term whether your property is occupied or not. The guaranteed rent scheme is offered by property management companies that handle all the responsibilities related to property from hiring, collecting rent, budgeting, repairing and maintenance, etc. The property manager sublet the property to a potential tenant at a higher rent and earn some part of the rent (from the total rent to be paid to the landlord) for earning profit in return for the risk taken and the work to be carried out. In this way, property management companies in London cut the landlord hassle to find tenants and set up and deal with a traditional letting agent. By hiring a property manager, landlords do not need to handle void periods, all the legal obligations to the tenant, and no call-outs or repairs to worry about. At the end of the term, the property manager you hired returns the property in the same state it was in when let –In simple words, as a landlord, you will not suffer from risk and all the time you will get the guaranteed rent payments.