It’s not quite as simple as it sounds—but having said that, it does precisely what it suggests. A landlord, or property owner, is guaranteed a contracted amount of rent, every month, even if the property is occupied or not. A contract can last for a minimum of 6–12 months up to 5 years and 10 years. This rent is guaranteed by a real property manager or management company that manages the property for the duration of the contract.
A guaranteed rent scheme sounds, simple really, dosen't it?
So, how does guaranteed rent work?
Letting a real property comes with a whole host of responsibilities and operations. From collecting rent to dealing with issues, it is very time consuming.
If an owner holds a portfolio with more than a couple of properties, looking after them, and their tenants pay the monthly rent as written in the tenancy agreement, can soon turn into working a full-time job and they are not even sure to have a guaranteed rental income.
If you enter into a guaranteed rent programme or a rent-to-rent scheme, as it’s also known, everything associated with being the landlord becomes the responsibility of the property manager or a management company like UpperKey. Your only job is to bank the payments. What’s not to like?