Having a rental income is great, but one surely needs to consider the amount of hassle that comes along. This is probably the reason why more and more landlords in London are switching to guaranteed rent plans. Guaranteed rent is a type of agreement between the owner of the property and a property management company or a guaranteed rent agent.
The agent takes the property on rent from the owner and in return pays a fixed. The agent sublets the property to other tenants and generates the rent.
In the present uncertain times, more and more landlords are choosing to work with agents like City Borough Housing for guaranteed East London rent. This not only gives them peace of mind, but the surety of an income irrespective of the fact that the property is given on rent or is empty.
Nevertheless, just like with any other thing, there are pros and cons to this agreement as well. If you are a landlord looking forward to signing a guaranteed rent agreement with an agent, you better understand the advantages and disadvantages of doing so.
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- Council perks are great. For instance, you are free from paying council fees, and council tax and even get free accreditation.
- Even if your property is located in a low-growth area, you get entitled to receive a fixed rent.
- You get paid regularly without worrying whether the tenants are paying rent on time to the agent or not.
- You are free from the responsibility and expenses of maintaining the property.
- You get to make a social difference since you are allowing another individual to earn money from your property.
- The amount you get as fixed rent will mostly be less compared to the amount you could get if you rent out the property yourself.
- You don’t get to decide what tenants will be using your property and what not.
- Finding a reliable agent can be time-consuming, and you will have to keep the property empty during this time.
Finding a suitable guaranteed rent program
As a landlord, you certainly want to make sure that you are handing your property to a reliable agent and thereby signing a suitable agreement. For this, ensure checking the following points:
Surety of guaranteed payments
Work with well-known agents to ensure you get paid regularly. Once you have signed a contract with the agent, it does not concern you whether the tenant living in the property is paying up the rent or not. In any case, you should get your fixed rent regularly.
Ensure that it is mentioned in the contract that you will not have to worry about any maintenance checks. Any and every type of maintenance requirement should be fulfilled by the agent.
Any property emergencies like flooding or fire should be taken care of by the agent. You shouldn’t be bothered by any such emergencies.
Health and safety requirements concerning the property will be taken care of by the agent. You as a owner don’t need to worry about them after signing the guaranteed rent program.
To conclude it can be said that a guaranteed rent program is surely great for landlords who want a steady income without any hassle. So, talk to a reliable agent today and get the benefits of working with a property management company.