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Guaranteed Rent For Landlords

Landlord property management, letting your property

How does guaranteed rent for landlords work?

Many landlords decide to rent out a property because they want to have some regular income from the rent. They treat this as a business, and the money that the tenant pays is not only to bring in some profit but also to possibly pay off some mortgage that has been taken out to buy the property.

With a landlord property management company, letting your property is much easier than if you decide to rent it out privately. Whilst it comes with a fee you will need to pay each month; there are benefits you will also need to keep in mind.

One of these is guaranteed rent.

guaranteed rent for landlords
What is guaranteed rent

What is guaranteed rent?

As the name suggests, guaranteed rent is when the rent to be paid to a landlord is covered. This works by the landlord signing over their property to another company (usually a landlord property management company), and they will then pay the rental income they receive from the tenants to the landlord.

The idea of this is that the landlord’s rental income will always come into their bank account, whether or not the tenant pays. The other company will cover the rental income.

Is the guaranteed rent the full amount?

One thing to know about guaranteed rent is that depending on the company that you sign up for it with; then you may find that the total amount of rent you may be able to get on the property market does not want to be paid.

More often than not, the amount paid back to the landlord will be just below the market value; this will deduct any fees taken for managing the rental property and covering the rental amount. After all, there needs to be enough for the company (and the landlord) to make a profit. Else there is simply no point in doing it in the first place.

managing the rental property
guaranteed rental scheme benefits

What are the benefits?

Of course, one of the most apparent benefits for landlords in the guaranteed rental scheme is that they always get their rental money, no matter what happens with the tenants and the property.

Not only this, but the entire process of renting the property will also be much easier to manage. Landlords can keep their hands off and concentrate on other aspects of their property investments. They won’t have to worry about legal proceedings, as these aspects of renting a property will be the most stressful.

If you are a landlord and want to make sure that your rental income works for you and your investment, then you will want to consider guaranteed rent. It might not mean that you get the full amount for your investment, but the entire process is as easy as possible to manage, and you won’t have to worry about your cash flow.

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