Guaranteed rent – the name alone sounds intriguing. As a landlord, many of you will know that the potential for missed or late payments, or having periods where your property is vacant can be a significant source of stress. Imagine if there was something in place that could give you peace of mind, consistent and guaranteed rent each month, and offer you a stress-free renting experience? It sounds too good to be true, right?
Wrong! Guaranteed rent in Lambeth and surrounding areas is something that we have been offering for years – and it is something that really will take all the stress and hassle away from renting! We’ve put together the ultimate guide to our guaranteed rent scheme, all you need to do is decide when to sign up for it!
What is a guaranteed rent scheme?
Letting a property comes with a whole host of responsibilities and operations. From finding new tenants and collecting rent on time to dealing with issues and keeping on top of repairs and maintenance, it can be extremely time-consuming. If you are a first-time landlord or you own a portfolio of properties, then looking after them and ensuring you get paid each month can soon turn into a full-time job – even if the idea was to create a less stressful second source of income.
If you enter into Denhan International’s guaranteed rent programme, then everything that is associated becomes our responsibility – apart from enjoying the rent! It is what it says on the tin – essentially you will be renting your property out to us (the guaranteed rent company in Lewisham) in exchange for a fixed monthly income, regardless of whether the property is empty, vacant or if the tenant is in arrears. It will then become our responsibility to sublet the property and resolve any tenancy issues once the property has been filled. Not only can you enjoy regular and consistent monthly payments, but we will also take responsibility for tenancy administration, property maintenance and repairs, finding new renters, and keeping you and your property compliant with all of the current legislation. It really is that simple!
What are the pros and cons of using a guaranteed rent scheme?
As with everything, there are advantages and disadvantages to the Croydon guaranteed rent scheme and we’ve highlighted the main ones to ensure that you have all of the information available.
Guaranteed Rent Scheme Pros
- Timely and fixed payments – the most important aspect of a guaranteed rent scheme is the landlord is paid on time, each month, with the same agreed-upon amount. You don’t have to chase tenants or enter messy disputes over late payments. We sort out everything and only involve you if it is required.
- No more utility costs – The guaranteed rent scheme means that your property management company is responsible for paying any outstanding utility bills, even when the property is empty. This means that you don’t have to cover any surprises or additional bills, and you get to save more money!
- No more regulation stress – When you enter into a guaranteed rent scheme agreement, you no longer have to worry about keeping up to date with all of the current regulations and legislations. Taking care of all of these becomes the property management company’s job. We will ensure that you are fully compliant and up to date with the ever-changing legislation, so you don’t have to worry.
- Maintenance and repair of the property – As part of your guaranteed rent agreement, we will undertake regular property inspections and ensure that all maintenance queries are dealt with quickly. By helping to keep your property in the best shape possible, we can keep both landlords and tenants happy and agreeable. Upon diagnosis of the issues, we will send you a full report and quote for any works needed.
- Dealing with tenant queries – Not only can we help to find tenants to fill your property, but we can also help by dealing with any questions and queries that they might have. Our vast knowledge and wealth of experience means that we can handle any queries that are thrown at us, and with all of the information ready to hand, we can help tenants settle in and treat your property as their home.
Guaranteed Rent Scheme Cons
- Lack of decision-making power – when you sign up for a guaranteed rent agreement, you will give up all of your decision-making power that relates to your property. Instead, any decisions will be made by your property management company, and this will last for the duration of the contract. While many people see this as a benefit as they don’t have to worry about their property, some people might not like the idea of giving up all power relating to decisions.
- Third-party scams – There are always property scams that are going around, and it is important that you thoroughly investigate any third party before entering into a contract with them.
- The property – while we do promise to help take away all of the hassle and stress of being a landlord, we cannot work magic. Unfortunately, the property still needs to be up to standard to get the most profit from your rent. You need to find a good location and keep on top of renovations etc. We need your property to be appealing to the right market before we advertise for tenants.
- Long contracts – depending on the agreement that you have made with your property management company, you could be locked into a long contract. This can be seen as a negative if you are looking to change anything regarding your property, or if you want to sell.
- Legal risks – while your property management company will ensure that you are always up to date and compliant with current legislation and regulations, you will still retain some risks. For example, if your property is in breach of these regulations, or if the letting agency collapses then legal responsibility will fall to the landlord.
So, as you can see, we think that the benefits of signing up for a guaranteed rent scheme outweigh the cons. You can enjoy less hassle and stress and let someone else do all of the hard work, whist you simply receive the rent in your bank account each month. However, it is always down to personal preference and what works for one person might not work for another. What there is no denying is how guaranteed rent schemes are changing property management and the letting business as a whole. Property management companies are now offering the perfect solution for landlords everywhere to help you get paid on time every month – with no failures. If this sounds like something you would be interested in, and you would like more information, then get in touch with our friendly team today. We are here to take all the stress and hassle away from renting out a property, leaving you to enjoy the perks.