Things To Look Out For With Guaranteed Rent Schemes
Trust is one of the most important things you can have in a tenancy. The Landlord needs to trust the tenants, the tenants need to trust the landlord, and you need to be able to trust us.
Here at Elliot Leigh Guaranteed Rents, we know the importance of trust which is why we strive for honesty in everything we do. To that end, we’d like to take a closer look at the pros and cons of Guaranteed Rents to help you work out if it's right for you.
What Is Guaranteed Rent?
In a way, it’s as easy as it sounds. Guaranteed Rent is a system whereby the landlord entrusts their property to another party with the guarantee that rent will consistently be paid. The Guaranteed Rent provider exists to eliminate hassle from the process, interacting with the tenant on behalf of the landlord, taking care of things like damage and property inspections, and generally mitigating risk from the process. In return, the provider takes a percentage of the rent payment.
What Could Go Wrong?
While Guaranteed Rent providers are, generally, a safe way to make healthy returns on your property investments, there are a few important things you need to watch out for.
Firstly, you should shop around to make sure they’re shopping around. Here at Elliot Leigh, we work across London ensuring that we’re getting the best deal on the market, but not all providers will be so scrupulous. Alternatively, some providers may attempt to charge extra fees such as a commission or management fee. This should be a red flag to you as the provider is already generating a profit off of renting out the property in the first place.
Secondly, you should always make sure you know exactly what your responsibilities are. While Guaranteed Rent providers do exist to minimise work on your end, you could still be responsible for some costs. Make sure you read over any contract you are offered and don’t hesitate to ask questions if something seems amiss.
Keep Your Eyes Open For ‘Schemes’
At the end of the day, it all comes back to trust. You need to be able to trust the company you work with and that means doing your research upfront. Look for reviews, speak to friends of yours who’ve been involved in similar arrangements, and make sure you know exactly what kind of deal you’re getting into before any contracts are signed. And remember, if the provider isn’t being transparent with you, then there’s a strong chance they aren’t prioritising your interests first.