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A guaranteed rent plan is one of the best options that can take off your stress as a property owner. Owning and managing a rental property yourself in London can be a tiresome job especially if you have multiple properties.
This is where a guaranteed rental plan is suggested which makes the property renting process much easier. The agent you hire acts as the tenant and ensures you get guaranteed rental payments each month even if your property is vacant.
How does a guaranteed rent scheme work?
Before considering what to look for in a program that ensures guaranteed rent in London, it is necessary to understand how this plan works. If you own a home that you want to rent out, a guaranteed rent company will take possession of it and assume responsibility for it while paying you a monthly rental fee.
The company acts as a tenant and will compensate you as the property owner for acting as the rental property’s landlord.
They will take care of everything related to:
- Promoting the property for rent.
- Getting it ready for rental.
- Setting the rental
- Renting out the property to renters.
- Ongoing maintenance on the property.
- Inspecting and looking after the property.
- Handling emergencies like unpaid rent and evictions.
How is a guaranteed rent scheme a good deal?
A guaranteed rent scheme is viewed as a good deal by most landlords in London as they know they will get guaranteed rent every month even if the property is vacant. There is also no worry about dealing with council tax or utility bills as the rental company would handle all such payments. If necessary, the rental company will also pay for any legal charges, unpaid rent, and eviction costs.
All this makes it worthwhile for the owners in London even if they expect to make less income in the rental fees since the rental company pays less rent and keeps the difference as the profit. This is why most guaranteed rent scheme companies do not charge any fees.
This scheme gives them peace of mind and better assurance that they will not lose any money even if the eviction process is dragged on for a longer time. Moreover, the rent company loses money if the tenants do not pay hence, you can expect them to be extra careful and pay more attention while choosing the right tenants for your property.
What to look for before choosing a guaranteed rent scheme in London?
As an owner, you can expect to look for certain benefits while choosing a guaranteed rent plan in London.
Consider the duration of the contract before signing a guaranteed rent agreement in London. Since they can last from six months to long-term contracts between 5-10 years, a longer duration of the contract would work better for you if you are retiring or moving abroad.
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Since the rent is paid to you by the rent company rather than the tenant, you should expect to receive the rent each month whether the tenant pays or not. The renting company takes care of the repairs, maintenance, property insurance, and everything else due to which you should be making more money even if you are getting less rent every month. Ensure you are satisfied with the rent offered before signing the contract.
Kind of property let
Consider the kind of property let before signing a guaranteed rent agreement in London. If your property is in a residential area and you want long-term tenants then consider the local council for a guaranteed rent plan since they use properties as council or association for housing rental properties.
If your property is in a London area that is popular with tourists then you might consider short-term tenants. It brings higher monthly earnings since people pay more to stay for a couple of days in a rental home.
Clarity of responsibilities
Look for a guaranteed rent business in London that you can rely on to find reputable tenants who will not damage your house. It is important to be clear about who will pay for any expenses if tenants cause any damage to your property.
However, rental companies usually work hard to find good tenants to save themselves from getting into financial trouble since they need to keep paying you the rent even if the tenants do not pay.
Maintenance and insurance
A good guaranteed rent plan ensures you are not responsible for the property maintenance as the rental company is supposed to manage the regular upkeep of the property. They also need to make sure that the property is under the right insurance.
However, since it is your investment, find out the kind of insurance they are using.
A guaranteed rent scheme offers better peace of mind to owners in London by taking away all the worries and hard work of managing a rental property on their own. Make a background check and consider all the factors properly before signing the contract with the right guaranteed rent company in London.