Being a landlord can be financially rewarding, but it’s not without stress too. One of the biggest concerns landlords face is void periods and missed payments. Luckily, that’s where guaranteed rent comes in.
Guaranteed rent gives landlords complete peace of mind that their rental income is protected, even if the property is empty. With a guaranteed rent contract the estate agent, that’s us, effectively becomes your tenant. We then sublet it to other tenants, but, because the ultimate financial responsibility is ours, we are responsible for the rent every month.
5 Things You Should Know About Guaranteed Rent in Aldborough Hatch
1. Stable Income: Guaranteed rent ensures that landlords receive their agreed rental income every month, even if the property is vacant or tenants miss payments. This eliminates the worry of void periods.
2. Hands-off Management: The estate agent takes full responsibility for managing the property, including tenant selection, rent collection and routine maintenance. This allows landlords to step back from the day-to-day management and enjoy passive income.
3. Less Risk: Guaranteed rent transfers the financial and operational risks to the agent. Even if tenants leave unexpectedly or there are issues with payments, the landlord’s income remains unaffected.
4. Lower Rent: While guaranteed rent provides peace of mind, it often comes with a slightly reduced rental income compared to renting on the open market, as the agent assumes the risk. However, at LTA Direct we’re able to offer competitive rates close to market value.
5. Limited Control Over Tenant Selection: Landlords who prefer to be involved in tenant selection may find guaranteed rent contracts restrictive, as the agent handles this process entirely.
Chat With Us About Guaranteed Rent
To get the ball rolling, use our online rent calculator to see what your property could achieve via guaranteed rent. Then, if you like the numbers, get in touch so we can start drawing up a contract.
LTA Direct is a leading supplier of guaranteed rent in London. We have partnerships with most of the local councils and we go above and beyond to create tailor-made packages that meet the unique needs of every landlord.