5 Challenges You Can Avoid With Guaranteed Rent
Landlords face various challenges due to multiple responsibilities having to be taken on at once. Below, we discuss the five main challenges stated by landlords in the Elliot Leigh Landlord Survey Report (June/July 2023) and how you can avoid them by entering a Guaranteed Rent Scheme.
1. Keeping up with Maintenance
Property management and maintenance can cause excessive stress for landlords. Maintenance is essential in every property but it is not always easy to deal with. It is said that landlords can have to spend thousands of pounds a year to maintain their property; not only do items of furniture need to meet certain health and safety standards, but other safety checks need to be carried out every year too.
With a Guaranteed Rent Scheme, minor repairs are part of the package. Maintenance is carried out at the property on behalf of the landlord and the property will have a dedicated property manager that will undertake inspections at regular intervals. However, you will be required to have the property to a certain standard before a Guaranteed Rent Scheme will take it on board.
2. Tenant damage to property
Whilst tenant damage is ultimately the responsibility of the tenant, it requires a reliable tenant who will repair the property to the right standard. When a tenant has not repaired the damage to a reasonable standard the landlord has no choice but to subtract funds from the deposit. If the cost of the damage exceeds that of the deposit then the landlord often has to take matters to court. Tenant damage can create a real nuisance for a landlord to settle.
On the other hand, it is the responsibility of a Guaranteed Rent Scheme to return the property back to the landlord in the condition it has been handed over. Tenant damage is dealt with by the renter and is not the responsibility of the landlord to resolve.
3. Finding Suitable Tenants
When finding a suitable tenant, many questions come up as a Landlord; Where do I advertise my property? Will my tenants look after my property? Will I receive rent on time? Data from Zoopla has found that 56% of landlords worry about finding suitable tenants and 55% struggle to find tenants who will actually care for their home.
Responsibility of finding tenants is not a task for the landlord when involved in a Guaranteed Rent Scheme. Finding tenants, managing the property and collecting payments become the responsibility of the Guaranteed Rent Scheme. Furthermore, a Guaranteed Rent Scheme does not require an occupied property for you to receive payments due to a fixed monthly rental income.
4. Receiving payments on time
Having reliable tenants who pay rent on time can be hard to come by but it is essential as a landlord with bills to pay. Attempts to receive payment on time are often time consuming and can be extremely counter productive for landlords.
Guaranteed Rent schemes have a policy where landlords can receive up to 3 months rent upfront. The scheme does not rely on the tenant paying rent on time so as a landlord you are guaranteed the rent you are owed. Collecting rental payments becomes a task of the renter.
5. Having an empty property
An empty property is one of a Landlord’s worst nightmares. Not only are you not receiving your rental income, council tax and maintenance costs are still thrown your way. However, an empty property doesn’t have to mean an empty pocket. With a Guaranteed Rent Scheme landlords will still receive a fixed rental income despite the property being empty.