This scheme works on the basis of an agent taking on a property and setting up a scheme that allows them to sublet the property to tenants chosen by them. These schemes tend to pay less rent than the true market value though they do have advantages and disadvantages to the landlord.
Benefits of the scheme
- No void periods as the guaranteed rent allows the landlords to receive the rent every month even though it is unoccupied
- Companies who run this scheme tend to pay for any certificates required or maintenance needs that occurs within the property.
- Companies who run this scheme tend to manage the property allowing the landlord to save on property management costs.
- Allows the landlord to be carefree, If the landlord is abroad, busy with their career or simply do not have the time and not in a position to deal with rentals, agents, maintenance, responsibilities.
Disadvantages of the scheme
- There is a chance there may not be any void periods and could be rented at a higher level of rent than currently paid by the scheme.
- You may not be pleased with the works done in the property though this is a risk landlords take when choosing a managing agent.
If you have any questions regarding guaranteed rental schemes or would like to have a 30 minute free property consultation please contact Pelin Martin on