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Letting a property can be stressful for landlords. They are affected by financial and economic climate changes. They have to dedicate time to finding and handling tenants. Plus, at the end of the year, they may have less money in their pockets than expected. Guaranteed rent schemes aim to relieve landlords of any additional stress and offer them a simple solution for letting their property.
What is guaranteed rent?
The main purpose of guaranteed rent schemes is to offer a simple solution to first-time landlords and buy-to-let investors when it comes to letting out their properties. They unburden landlords of the additional stress relating to dealing with tenant queries and complaints. Plus, they guarantee landlords that they receive their rent on time. This can secure their investment and guarantee them a steady income, unaffected by any changes in the financial or economic climate.
Through a guaranteed rent scheme, landlords actually let out their property not to the tenant directly, but to a third party property manager. This can be an individual or a company. This way, the landlord has no direct contact with the tenants and does not have to worry about any additional hassle. Aspects such as tenant screening, property maintenance, managing queries and complaints, potential evictions are all handled by the property manager.
When choosing a guaranteed rent scheme, the landlord is free of any stress. All they need to do is collect their guaranteed monthly payment.
How Is Rent Paid Under a Guaranteed Rent Scheme?
The biggest advantage of a guaranteed rent scheme is that landlords receive their rent payments on time every time.
Landlords can rest easy knowing that they receive their rent payment on a fixed date each month. This happens without depending on the tenant’s ability to pay and no matter if the property is occupied or not.
Who Handles the Maintenance and Repairs Under a Guaranteed Rent Scheme?
When choosing a guaranteed rent scheme, any repairs or regular inspections relating to the property are handled by the property manager. The landlord does not have to worry about any maintenance throughout the contractual period. This ensures that the property is well-kept and returned to its landlord in good condition.
How Secure Is a Guaranteed Rent Scheme?
Using a guaranteed rent scheme, landlords can secure their investment and receive a constant and guaranteed income throughout the contractual period. This way, they don’t need to worry about late payments or vacancies. They also don’t need to worry about managing any repairs or maintaining the property. In addition, once the contractual period is finished, landlords receive their properties back in their original condition.