Landlords are facing a serious arrears crisis, as a new study finds that as many as one in 13 private tenants are now behind on rent payments.
This figure is even higher than that seen in the pandemic, due to the increasing cost of living crisis disproportionately hitting renters. As rent, bills and the cost of living rise above the increase in wages, tenants are struggling with disposable income. The number of renters struggling to make payments takes us close to the amount seen in the financial crisis year between 2011-2012.
One way estate agencies can help prevent this issue is through guaranteed rent agreements with landlords.
How Can Guaranteed Rent Help Landlords?
Guaranteed rent is a seamless service that helps landlords maximise their earning potential, whilst minimising the need for them to get involved in the day-to-day running of the property.
Guaranteed rent estate agents, such as ourselves, offer full management of the property, dealing with everything from references to gas safety checks and repairs around the property. We have a number of in-house contractors, such as gas-safe engineers and electricians, so we can help landlords with maintenance and repairs, whilst reducing out-costs for business owners.
When landlords sign a guaranteed rent agreement, it will be for a fixed period of time, usually between 1-5 years. During that time, the guaranteed rent agency will manage the property, taking care of repairs, property inspections and tenants, whilst the landlord receives regular rent payments from the agency.
Most importantly for landlords, guaranteed rental agreements protect against empty periods. The rent is guaranteed, even if the property is empty, so landlords have the peace of mind they will be able to make mortgage payments each month.
How Do You Sign Up To A Guaranteed Rent Scheme?
Getting signed onto a guaranteed rent scheme is fairly simple/
Firstly, arrange a property appraisal to set the ball rolling. The agent will agree on the rental value and then contracts will be signed.
Secondly, any work and certifications will be completed. This could be general maintenance or EPC/gas safe certifications. A property inspection will be conducted and photos will be taken for inventory.
Next, the contract will commence and the tenant will move in.
Finally, the guaranteed rent payments will be sent to the landlord each month, with no need for the landlord to be involved in the management process.
Looking For Guaranteed Rent Agents?
Elliot Leigh has worked in partnership with landlords, councils and housing associations for over 20 years. We can offer the best service whilst also helping achieve the highest rental prices. If you would like to find out more, just get in touch to chat with our friendly team.
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