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Guaranteed Rent also known as Rent to Rent is where an individual or company takes an interest in a property for a period of time from a landlord and guarantees to pay a fixed rent to the landlord. The landlord gives consent to the third party, ‘the Renter’, to then rent the property to other tenants. The Renter and they become the tenant liable for the rent. There are several ways to legally sublet a property, usually involving commercial or corporate tenancies, management agreements, and leases or guaranteed rent schemes.
Why do landlords choose to use Guaranteed Rent
The benefits of the arrangement to the landlord is that their rental income is guaranteed regardless of whether the tenants who live at the property pay the rent or if the property becomes empty. The ‘Renter’ would generally also take care of any damage to the property as it is their responsibility to return the property back to the landlord in the same condition as when they took it. This all gives the landlord a peace of mind.
The ‘Renter’ would be expected to comply with all the numerous laws and compliance issues that an agent would generally deal with, saving the landlord time and money. The landlord can also request a longer contract with the ‘Renter’, being anything from 1-5 years. This provides more security for the landlord, so they can possible budget long term.
WORK TRAVEL INVESTORS LETTING GUARANTEED RENT AGENCY makes all of this possible so don’t miss out the opportunity.