As a landlord, one of the biggest concerns is ensuring steady rental income. While traditional rental agreements can provide this, the potential for void periods and unpaid rent can lead to significant losses. This is where a guaranteed rent scheme can be incredibly beneficial, providing peace of mind and financial stability.
What is a guaranteed rent scheme?
A guaranteed rent scheme is a type of rental agreement where the property owner (landlord) signs a contract with a third party, such as a serviced accommodation management company like AV Stays. This contract guarantees that the landlord will receive a fixed monthly rental income for a set period, regardless of whether the property is vacant or not.
How does it work?
In a guaranteed rent scheme, the third-party company takes on the responsibility of finding tenants and managing the property, including maintenance and repairs. They then sublet the property to tenants, collecting the rent themselves, and taking a commission for their services.
The fixed rental income agreed upon in the contract is typically based on the current market rental rate for the property. The third-party company will then take on the risk of finding tenants, ensuring occupancy, and dealing with any issues that arise during the contract period.
What are the benefits of a guaranteed rent scheme?
One of the primary benefits of a guaranteed rent scheme is financial stability. Landlords can rest easy knowing they will receive a fixed rental income every month, even if the property is vacant. This can provide a sense of security and make it easier to plan and budget for expenses.
Another significant benefit is the time and effort saved on managing the property. The third-party company takes on the responsibility of finding tenants, screening them, and managing the property, including repairs and maintenance. This can save landlords a significant amount of time and energy, allowing them to focus on other aspects of their lives or businesses.
Furthermore, guaranteed rent schemes can help landlords avoid the risks associated with void periods and unpaid rent. The third-party company takes on the responsibility of finding and vetting tenants, and they have a vested interest in ensuring occupancy. They also deal with any issues that arise, reducing the risk of disputes and unpaid rent.
A guaranteed rent scheme can be an excellent option for landlords who want financial stability and a hassle-free rental experience. By signing a contract with a third-party company, landlords can rest easy knowing they will receive a fixed rental income every month, even if the property is vacant. They can also save time and energy on managing the property while reducing the risks associated with void periods and unpaid rent. With AV Stays’ guaranteed rent scheme, landlords can have peace of mind knowing their properties are in good hands.
