If you’re looking for a more hands-off, stable approach to property letting, a guaranteed rent scheme can be a great option. These schemes offer fixed, monthly rental income regardless of whether the property is occupied, offering brilliant peace of mind for landlords.
But, if you’re a landlord who is considering one of these schemes, it’s important to know that not all schemes are created equal. So, it’s important to ask the right questions before signing an agreement. In this article, we’ll run through five key questions to ask any guaranteed rent provider.
Naturally, one of the main benefits of guaranteed rent is the fact that the rent is guaranteed. But not every provider covers you for the same things. Some will only guarantee rent for tenanted periods, whilst others will guarantee rent in void periods too. Make sure you clarify this to avoid any surprises.
Ask how day-to-day maintenance is handled, and who covers the cost. A reliable provider will carry out routine maintenance as part of their service, but larger repairs might still fall to you. Understanding the breakdown of responsibilities can help you budget more accurately.
Most providers will have a minimum property standard. Ask whether any upgrades or safety certifications are required. Knowing this in advance will help you avoid delays ,so your property can start earning sooner.
Guaranteed rent contracts can range from 1 to 5 years. Confirm the length of the agreement and what your options are once it ends. Can you easily renew? Is there any option to exit early under certain conditions?
Some providers will work with local councils, housing associations or vetted tenants. Ask who will be living in the property, and what level of tenancy vetting is involved. You might want to ask about:
A guaranteed rent scheme can simplify property management, reduce risk, and offer landlords predictable income. But, only if you work with the right provider and you know what you’re getting yourself into. By asking the right questions, you can make sure the contract you sign aligns with your goals and protects your property.
