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As the housing market evolves and the landscape of property management transforms, landlords are experiencing a range of challenges that have an effect on their success and profitability.
Recent feedback to Elliot Leigh has led us to discover there are five primary challenges that have recently affected landlords more than others. This includes finding suitable tenants, staying ahead of landlord legislation, managing maintenance, handling paperwork such as tenancy agreements, and mitigating the loss of income during vacant periods.
However, in the realm of solutions, we're biased to say that there's one concept stands out - guaranteed rent. Let's explore each challenge and explore how guaranteed rent can serve as the remedy.
Challenge 1. Finding Suitable Tenants:
The top challenge we’ve found landlords are facing are ensuring they secure reliable and responsible tenants. Screening applicants, conducting background checks, and verifying references can be time-consuming. Let’s not forget, a bad tenant can lead to a cascade of problems ranging from property damage to missed rent payments
Solution: Guaranteed Rent
Guaranteed rent schemes offer landlords the assurance of consistent income regardless of occupancy. With our agreement, property management companies or agencies lease the property for a fixed term, often 1-5 years, and guarantee a predetermined rent amount. This eliminates the hassle of vetting tenants and the anxiety of vacancies.
Challenge 2. Keeping Up with Landlord Legislation:
Navigating everchanging landlord legislation is not an easy job. Legal frameworks, understanding rights and responsibilities, and ensuring compliance can be daunting for landlords, especially those managing multiple properties across different jurisdictions.
Solution: Guaranteed Rent
As a property management company, we ensure that our landlords stay on top of regulations. Our dedicated property managers will inform landlords of any certificates in need of renewal (some of which Elliot Leigh will even carry out on your behalf). This way landlords can offload the burden of legal compliance, ensuring peace of mind and avoiding costly penalties.
Challenge 3. Keeping Up with Maintenance:
Property maintenance is essential for preserving asset value and ensuring tenant satisfaction. From routine repairs to emergency fixes, landlords must address maintenance issues promptly and efficiently to uphold property standards and tenant comfort.
Solution: Guaranteed Rent
Our Guaranteed rent service includes property management services, with an in-house team available 24/7 for routine maintenance, repairs, and even renovations. With an internal team of trusted contractors, we can ensure the timely and high-quality maintenance without the landlord's direct involvement (but of course, with their permission first).
Challenge 4. Paperwork (Tenancy Agreements):
Tenancy agreements and associated paperwork are critical for establishing clear terms and protecting the interests of both landlords and tenants. However, drafting comprehensive agreements, navigating legal jargon, and ensuring compliance with relevant laws can be difficult tasks for landlords.
Solution: Guaranteed Rent
Property management companies offering guaranteed rent streamline the leasing process by handling all paperwork and documentation on behalf of the landlord. From drafting tenancy agreements to managing lease renewals and terminations, these professionals ensure legal compliance and remove administrative burdens.
5. Loss of Income Between Vacant Periods:
Vacancies represent a significant financial strain for landlords, leading to a loss of rental income and potentially worsening operational costs. Moreover, the time and resources required to market the property, screen applicants, and finalise leases can prolong the vacant period, compounding financial losses.
Solution: Guaranteed Rent
Perhaps the most compelling aspect of guaranteed rent is its ability to shield landlords from income loss during vacant periods. By guaranteeing a fixed rental income irrespective of occupancy, our scheme provides landlords with a predictable cash flow, minimising financial uncertainty and maximising profitability.
Whilst we’ve named 5 challenges that landlords face, every landlord situation is different and will depend on various factors such as having a full time job, living far away from the property they let, the size of their property portfolio and more.
No matter the challenge, by entrusting your properties to reputable property management companies offering guaranteed rent (like Elliot Leigh), landlords can overcome obstacles, safeguard their investments, and embrace a journey of sustained profitability and peace of mind. Learn more about our offering here: