How do Guaranteed Rent Schemes Actually Work?
Updated: Mar 16, 2020
If you’re a landlord you’ve probably heard of guaranteed rent schemes. But like anything that sounds too good to be true you’ve probably discounted them haven’t you? So we thought we’d give you the full lowdown on how rent guarantee schemes actually work using Brighton Property Angel’s own GuaranteedRent+ product as an example.
What is Guaranteed Rent?
According to the Property Redress Scheme (PRS), guaranteed rent is “where an individual or company takes an interest in a property for a period of time from a landlord and guarantees to pay a fixed rent to the landlord. The landlord gives consent to the third party, ‘the Renter’, to then rent the property to other tenants.”
Because the renter is doing so to rent the property out to someone else, rent guarantee schemes are also known as ‘rent to rent’ schemes.
Our GuaranteedRent+ scheme
So how does a guaranteed rent scheme work in practice? Let’s use Brighton Property Angel’s GuaranteedRent+ scheme as an example. We guarantee a rental price with the landlord and pay up to 5 years rent in advance. As a landlord for the next five years you will benefit from:
Guaranteed rental income in advance
No void periods
No rent arrears
No maintenance and cleaning costs
No agent costs to find tenants
No unexpected bills
No need to chase up references and deposits
Better still your property and furnishing will be returned to you in the same or more likely in even better condition, because we will make improvements to improve the rentability of your property.
It does sound too good to be true doesn’t it?
How does our Guaranteed Rent Scheme actually work?
Brighton Property Angels is willing to provide all the benefits above because we are property experts in Brighton. Because of this expertise we can maximise the rental value for your property. We can do this quickly and efficiently because we do it all the time, for individual landlords it would take far too much time and money. We pay a fair rental price to landlords that reflects all the savings and benefits listed above. And then we use our expertise to secure additional rental income from the property. Everyone wins!
Guaranteed Rent versus Letting Agent
If you don’t want the hassle of managing your rental property you could of course consider using a Letting Agent to manage your property for you. But we honestly don’t believe the maths stack up, take a look at our comparison. There is also more risk as most professional rental agreements are for between six months and one year leaving you exposed to void periods. You will still have to pay high agency fees as well as additional costs such as cleaners, gardeners, maintenance and refurbishment.
Want to find out how Brighton Property Angel’s GuaranteedRent+ scheme can work for you? Please get in touch for a free quote now.