Pros & Cons

Advantages

  • Maintenance and repairs cost is fully covered by the Guaranteed Rent provider.
  • suppliers are managed by the Guaranteed Rent provider.
  • All the time in the Universe is yours – nothing is wasted on management.
  • Live anywhere you want. To keep it easy, almost all communications take place via email, text, phone, and sometimes even Facebook posts if you wish.
  • Steady and predictable guaranteed monthly rental income (rent is paid even when the property stays empty).
  • This is long-term solution that can last for years and years on end.

Disadvantages

  • Landlord might have less control over management style.
  • Guaranteed Rent amount offer is usually equivalent to the realistic current market rent when the property is rented to a single family. This is frequently lower than if rented on a room-by-room basis.
  • Some properties need an additional licensing .
  • This solution is not appropriate for every house.
  • Trust and understanding between the Guaranteed Rent provider and the landlord is paramount. This can sometimes be difficult to establish at the very beginning when parties do not know each other. Once established, it will last for many years.
Some exceptions will take place in regard to maintenance. Largely, this will depend on the Guaranteed Rent provider and the terms that they provide. In our case we will exclude any structural damage, boiler, heating, and sewerage systems. If damage was caused by the tenants, however, this will fall under our remit.

Who this solution is IDEAL for?

  • Landlords who would like to secure a steady cash-flow over the long-term.
  • Landlords living abroad who have investment properties in London.
  • Landlords who have no time or desire to manage tenants or any additional invoices and expenses.
  • Landlords who need peace of mind knowing that all affairs for their investment property are covered by someone who is genuinely interested in a successful outcome.

Who this is NOT for?

  • Landlords who are looking to maximise profit to the greatest possible extent.
In this case we would recommend taking care of all the management tasks by yourself. Please also remember that there are certain rules, regulations, and compliances that landlords are required to follow. The best place to start exploring this area is at the Residential Landlords Association website (http://www.rla.org.uk/) and at your local Borough Council.
  • Landlords who are ok with unstable profit, which can be high, low, and sometimes even negative.
In this case, the Letting Agency would probably be your best option. Keep in mind however that your monthly profit will be affected by any extra works, void periods, and large bills. Please also consider who is going to be responsible for utility bills, insurance, TV license, internet, and cleaning, among others.

Other Things To Consider

  • Some Landlords do not like the idea of multiple unrelated people sharing their house – they would rather rent it to a family, hoping that this would result in less management and reduced costs. From our experience, we have found that this is not always the case and, more importantly, your rent is still not guaranteed due to management still being your responsibility.
  • When renting the house, some tenants tend not to tell the landlord about subletting. They can pretend to be a family/friends and will rent the property as if for themselves but, after this, without the landlord’s consent, they could still sublet the property. This is illegal.
  • Landlords who have no time or desire to manage tenants or any additional invoices and expenses.
  • Landlords who need peace of mind knowing that all affairs for their investment property are covered by someone who is genuinely interested in a successful outcome.
Some Guaranteed Rent providers do not really offer FULL maintenance and repairs cover and they will still charge you for a number of things. Please check their terms and lease agreement