Guaranteed Rent is as the name suggests. No matter whether a tenant is drawn to the property or not, a landlord or property owner is guaranteed to receive the agreed-upon amount of rent each month. A contract can be renewed up to five times and ten times for a minimum of 6 to 12 months. A property manager or firm that handles the property for the term of the contract guarantees this rent.
If an owner has a portfolio with more than one property, they must still take care of them and ensure that their renters pay the annual rent as specified in the residence agreement.
However, the property manager or a management firm like City Borough Housing takes on all the responsibilities that come with being the landlord. If you sign up for a rent-to-rent arrangement or a guaranteed Croydon rental programme. You just need to worry about transferring the payment into a bank account.
Benefits of the Guaranteed Rent Scheme
Payment on Time Irrespective of Location and Home Size
Regardless of the size or location of your property, you will receive a yearly payment on time. Whether or not your home is rented out, vacant, or receiving rent payments has no bearing on the programme. You will not have to worry about money because you’ll be accepting your payments monthly.
You will receive your first payment the moment you sign the guaranteed rent plan. You will not need to wait in line for the tenants to move in and take up residence on your property. Under the programme, you will get a yearly payment for the duration of the lease. As soon as you join the scheme, you can start making rental earnings.
Constant and Regular Payments
Under any condition, you will always receive your rental money on the same day of the month, so you always know when to expect it. This can be especially helpful if you need to pay your mortgage or any other expenses because you can be sure that the transfer of your funds will be on which day of the month. It helps in managing your funds. Additionally, it also helps to save money each month. This will enable you to make larger investments in the future.
No Interaction With Tenants
When you have a guaranteed rent agreement, the property management firm will manage all viewings and you will not have to engage with any tenants. Not having to go through laborious background checks will save you time. The management firm will manage the renting and provide a rent guarantee throughout the leasing process.
Maintaining the condition of your rental property is essential. All the properties that are handled by businesses that offer guaranteed rent plans frequently undergo routine inspections. Additionally, they check to verify if the tenants are adhering to the lease terms and taking good care of your home.
They ensure that your property is returned in the same condition as when the renters first moved in. If a product is damaged in any way, they will see to it that it is fixed or replaced.
There are many benefits of guaranteed rent, but you need to hire a good property manager or firm. Always consult with 2-3 management firms before enrolling with the right one.