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The complexities of being a landlord in today’s market present a host of new concerns which go beyond void periods and rent arrears. It’s compliance, finding reliable tenants, gaining access, legislation, eviction, financial balancing, the list goes on.
Ultimately, being a landlord has become more time consuming and more expensive than ever before. With incoming legislation (Renters Reform Bill), in particular the abolition of Section 21, we’ve naturally seen some landlords deciding the industry is no longer for them.
However, we have also spoken to landlords who are looking to establish the best way to navigate these challenges, whilst remaining profitable.
Here we have provided information on how using a Guaranteed Rent Scheme versus being a traditional private landlord can potentially save landlords both time and money in several ways:-
Reliable Rental Income: The primary benefit of guaranteed rent is that it provides landlords with a consistent and guaranteed rental income. Regardless of whether the property is vacant or the tenant fails to pay, you still receive rent. This can help landlords avoid income gaps and financial stress.
Reduced Void Periods: Our scheme includes a provisions for covering rent during void periods when the property is unoccupied, eliminating the risk of lost rental income and enabling landlords to maintain a steady cash flow.
No Tenant Finding Costs: Properties with Elliot Leigh are let to local authorities but fully managed by us, meaning landlords don’t have to spend money on advertising, tenant screening, and other expenses associated with finding and vetting tenants. This is all covered.
Property Management Included: Elliot Leigh includes full management services, saving landlords money on maintenance and repair costs.
Rent Collection and Legal Support: We take care of rent collection and provide legal support in the case of disputes or tenant issues. This is a huge saving to landlords who aren’t faced with hefty legal costs and eviction fees. As above, we also take full responsibility for ensuring that the rent is paid to landlords, even if the tenant defaults.
Compliance and Regulation: We ensure that our landlords’ properties are compliant with all relevant regulations, including safety and licensing requirements, saving landlords time and money by preventing fines and penalties for non-compliance.
Using average costs, we have provided a breakdown below to illustrate the typical savings a landlord can make by opting for Guaranteed Rent Scheme, not to mention the hours saved by taking a hands-off approach to landlording:
| Private Rent - £1,650pm | Guaranteed Rent via Elliot Leigh - £1,400pm |
Annual Rent income | £19,800 | £16,800 |
Commission @ 10% | -£1,980 | £0 |
VAT @ 20% | -£396 | £0 |
Referencing / set up fees | -£250 | £0 |
Inventory / check in / check out | -£250 | £0 |
1 month empty period | -£1,650 | £0 |
Total annual income | £15,274 | £16,800 |
Please note the above is an example & may not reflect the costs for your specific property
We also include the below items free of charge under the guaranteed rent scheme, saving the landlord further expenses incurred when renting privately:
Guaranteed rent with no excuses | £0.00 |
No void periods* | £800.00 |
Utility and council tax payments during void periods * | £250.00 |
Refurbishments of properties when tenant moves out** | £1,000.00 |
Free minor repairs | £250.00 |
Free regular property inspections | £150.00 |
No evictions cost for rent arrears, breach of tenancy, etc during the term | £2,000.00 |
*The above calculations are based on the property being void for 1 month every 2 years which is the London average.
**The above calculation is based on the need to refurbish a property every 4-6 years accounting for fair wear and tear.
For more information or to get a rental quote for your property, get in touch today.