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Rent paid in advance offers an optional landlord rent guarantee for 3.75% of the annual rent. This ensures the landlord won’t be required to pay back any of the advance rent, even if the tenant in situ is in default of payment for up to 12 months rent, or until vacant possession is obtained. 80% of rent paid in advance landlords take this out, as it’s a small price to pay for peace of mind.
In a worst case scenario, if tenants left the property early and refused to up-hold their legal rental obligations, the landlord can pause the rent paid in advance and the local partner agent will find new tenants to pay off the remaining term. The landlord does not pay another fee for this 2nd replacement tenant find (other than set up fees). If the landlord decides to sell or move back into the property they will need to pay back the remaining upfront rent before they can take the property back.