There is no denial about the fact that being a landlord is a fruitful business. But it can be a tricky and challenging business. And if you are new to this industry, you might find yourself stressing out about the hurdles that come along the way.
As a landlord, the possibilities are endless. From screening tenants to dealing with the problematic ones and from focusing on admin tasks to maintenance; you seem to be juggling a lot of duties, almost all the time. And the solution to all of this is guaranteed rent for landlords.
There has been a lot of buzz about it lately. However, landlords do seem a bit skeptical about choosing it. And for all the right reasons. As it is your business, researching, and understanding this scheme before opting for it, is very important. And we will be assisting you in understanding what guaranteed rent schemes are and what benefits they bring along.
What is Guaranteed Rent?
In guaranteed rent, you (landlord), sign a contract with a company or even an individual, who will manage your property on your behalf. You will putforth all of your responsibilities as a landlord, to the third party, i.e. the company. They will screen the tenants, choose them and manage the property accordingly (similar to as you would). Furthermore, the third party will pay you, regardless of the fact, whether they get a tenant or not. They will be paying you every month, as per the contract.
Benefits of Guaranteed Rent:
With the disturbing financial situation, around the world, people are more worried about their financial security. This has driven people towards the guaranteed rent scheme. And for all the right reasons. This scheme does not make it easier for people to gain multiple advantages whilst offering financial security as well.
Let’s have a look.
1. Guaranteed Payments:
This is one of the most attractive benefits of the guaranteed rent scheme. The third party, i.e. the company or the individual, will be paying you the stated rent, every month. Whether they get a tenant for the property or not; you will be paid.
2. Free Maintenance:
One of the most tiring and stressful tasks for a landlord is to constantly maintain their property. But with a guaranteed rent scheme, you eliminate that stress too. The third party is responsible for maintaining your property, just like you would. They look after your house and maintain it, without any investments required from your side.
3. No Additional Expenses:
Costs such as council tax or property bills are also handed over to the third party. If they find new tenants, the bills will be handed over to them. Elsewise, the company will be managing these expenses too. Therefore, you as a landlord are freed from multiple duties.
Is it Worth it?
As the market is adapting to this system at the moment, there is a lot that needs to be studied to come to a firm conclusion. However, at the given time, guaranteed rent schemes do seem to be extremely helpful. They are a great getaway for landlords who have been doing this for a long time and require a break.
But the main aspect here is to find a trustworthy third-party company. Do not give out your property to simply anyone. You must conduct research and choose a company or individual wisely. As they will be responsible for looking after your property, you must be very picky about the choice you make.
In the end, guaranteed rent schemes are making lives better for landlords. And we hope this innovation stays