The guaranteed rent scheme consists of a contract between a landlord and a third party for the control and management of a property. The landlord receives a monthly payment from the third party who is responsible for finding tenants to rent the property out to.
As a result, landlords get paid consistently every month while they temporarily relinquish control of their property. Therefore, landlords do not have to stress about searching for tenants or maintaining the condition of their property.
Advantages of the Guaranteed Rent Scheme
No Concerns About Regulations
As the person in control of a property, there are many health and safety regulations you need to deal with when a tenant moves into your property. The guaranteed rent scheme transfers this responsibility from the landlord to the third party. So the third party will have to enforce all property rulings instead.
No Utility Costs
The guaranteed rent scheme also helps landlords to save money as they don’t need to pay any utility costs. Broadband and electricity expenses can be costly and reduce the amount of profit a landlord makes every month. When guaranteed rent is agreed upon, it becomes the third party’s responsibility to cover utility costs.
Disadvantages of the Guaranteed Rent Scheme
No Control Over Your Property
With every guaranteed rent scheme, all the power is given to the third party. Rather than the landlord, the third party will decide which tenants rent the property and during the contract, their decisions are final. Hence, there is the risk that your home is inhabited by bad tenants who do not treat your property with respect.
Maintenance of Your Property is not Guaranteed
When a guaranteed rent scheme is agreed upon, there is no guarantee that the third party will keep your property in good condition. This includes not taking the time to clean your home as well as not repairing damages. If the condition of your property significantly worsens this could negatively affect its long term value too.
If you’re looking for a reliable guaranteed rent scheme, check out Elliot Leigh Guaranteed Rent. You can call them on 0208 983 4444 to find out more about their service.