A guaranteed rent scheme can be one of the best ways to take the pressure off yourself as a landlord. When you own and rent out a rental property, managing it yourself can quickly become a full-time job, and there’s even more work to do if you are renting out multiple properties. Guaranteed rent offers exactly what it suggests: rental payments are guaranteed each month. This is the case even if the property is empty, or if the tenants who are living in the property fail to make rent payments.
How Does Guaranteed Rent Work?
Before determining what to look for in a guaranteed rent scheme West London, it’s worth finding out more about what guaranteed rent actually is. If you own a property that you want to rent out, then a company that offers guaranteed rent West London will take over the property and become responsible for it, while making a monthly rental payment to you.
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Effectively, the company will be paying you as the property owner to act as the landlord of the property. They will then become responsible for everything involved in letting the property to tenants, including preparing the property for renting, maintenance and upkeep over time, advertising the property for rent, setting the rental fee, inspecting the property, dealing with emergencies, and dealing with other issues like rent arrears and evictions. As the property owner, you’ll still get paid regardless, and none of the problems will be yours to deal with.
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What are the Main Things to Look for in a Guaranteed Rent Scheme?
If you want guaranteed rent for your property, then guaranteed rent companies West London can be worth considering. According to UpperKey, there are several options to consider when it comes to the guaranteed rent scheme including renting to the council, who will use your property for their tenants, or renting to a private company who may find private tenants, or short-term tenants to sublet your property to. Whichever type of scheme you decide to go for, there are several things to consider beforehand. Some of the main things to look out for include:
Length of Contract
Before you enter into a guaranteed rent scheme, it’s worth considering how long the contract is going to last for. A guaranteed rental contract can last anywhere from six months to longer-term contracts of between five and ten years, so think about how long you want to do it for. If you’re retiring or moving abroad, for example, then a longer contract might work out better for you.
Before getting into a Denhan guaranteed rent London SW16 4EU scheme, it’s worth thinking about how much money you want to make from your property each month. In general, one of the downsides of guaranteed rent is that you will not usually be paid as much as you could be if you were renting out the property privately instead.
However, on the upside, since the third party or renter is responsible for maintenance costs, insuring the property, and everything else, you could end up making more over time, even if you’re getting paid less in rent per month. Before entering into an agreement, make sure that you are satisfied with the rent payment that you are offered.
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Type of Let
Another aspect of the guaranteed rental scheme to consider before you choose the right one for you is the type of let. This will help you determine which rent guarantee company might be the best choice for your property. For example, if your property is in a residential area or a low socio-economic area and you want guaranteed rent from long-term tenants who live in the property as their own home, then the local council might be worth considering, as many councils offer guaranteed rent schemes in order to use properties as council or housing association rental properties.
On the other hand, you may also want to consider short-term lets. Short-term lets could mean that you earn more per month compared to long-term renting, say UpperKey, as they generally bring in more income as people will pay a higher price to stay somewhere for a couple of days compared to the same amount of time in their own rental home. If your property is in an area of London that is popular with tourists, this might be something that is worth considering to boost your profits.
Another downside to guaranteed rent is that even though you own the property, you might not have a say in who ends up living in it. If this is important to you, then you might be interested in finding a guaranteed rental scheme that allows you to take part in the tenant selection and vetting process. On the other hand, some landlords looking for a guaranteed rent company West London might be happy to pass all the responsibility on.
It’s important to find a guaranteed rent company that you can trust to find good tenants who are not going to damage or destroy your property. It is also important to be clear on who is responsible for any costs incurred by tenants that do cause damage. In most cases, this will be the responsibility of the third-party renter if the house is still under the guaranteed rent agreement contract. The good news is that since the renter must continue paying you the rent even if the tenants don’t pay, most will put a lot of effort into finding the right tenants, to avoid their own financial trouble.
With a good, guaranteed rent scheme, you as the property owner should not be responsible for any property maintenance, including covering the cost of it. Make sure that it’s included in the contract that the third party or guaranteed rent company is responsible for keeping the property well-maintained, managing regular upkeep, and ensuring that the property is in line with all the latest health and safety regulations.
Under no circumstances should you be responsible for any of this once you have signed the contract. As a property owner, you need to be able to trust the company that you are making responsible for your property to look after it the same way that you would while it is in their hands, and they are renting it out to tenants.
Another thing that you shouldn’t expect to have to deal with as a property owner is emergencies in the property. If the boiler breaks down, the bath starts leaking through the kitchen ceiling or a pipe burst in the house, the rent guarantee company should be the first port of call for the tenants rather than yourself. And any issues should be the responsibility of the rent guarantee company to fix, rather than yourself. As the property owner, you may be happy to not even hear about anything that’s gone wrong and trust that it will be dealt with, or you may want to at least be informed, so be sure to ask any rent guarantee companies you’re considering about their policy on this.
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Evictions are another problem with renting out a property that you might be trying to avoid as much as possible when you decide to look for a guaranteed rent scheme. If you’re going for a guaranteed rent scheme that will mean the third party finds long-term tenants to live in the property, then there’s always the chance that an eviction may need to occur. If tenants don’t pay rent, the whole eviction process can be a massive nightmare for landlords, so it’s no surprise that the fact you’ll still be paid the rent each month and won’t be personally responsible for dealing with the eviction process makes the idea of guaranteed rent so appealing.
Before you decide on a guaranteed rent company in London, be clear on their evictions policy and how involved – or not involved – you’re going to be should this situation happen.
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Before choosing the right rent guarantee company or scheme for you, it’s worth finding out more about insurance. Once you sign the contract, the responsibility of making sure that the property is covered with the right type of buildings insurance is no longer your responsibility, but that of the third party who will be renting the property and subletting to tenants. Since the property is your investment, it’s worth finding out more about the type of insurance they use, what it covers, and anything else that is important to you. You may be able to enter an agreement where both parties have insurance on the property or stipulate the type of insurance that you want to be held on the property within the contract.
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Guaranteed rent offers more peace of mind for landlords in London and takes away all the pressure and hard work that comes along with managing a rental property on your own. However, before you find the right company to enter into a guaranteed rental scheme contract with, it’s worth considering all these different factors associated with it.
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