As a landlord, you have some different ways to increase your profit and guaranteed rent is one such scheme that ensures maximizing your rental income and peace of mind for your property.

Under a guaranteed rent scheme, the landlord transfers control of their rental property to a business, organization, renting agent, or individual which is also known as a rent-to-rent scheme. They get a guaranteed monthly income in exchange for whether the property is occupied or vacant or if the tenant is in arrears.

The person or business who leases the property from the landlord controls the property and tenancy and sublets it to renters. The middle tenant manages everything and there is no direct communication between the tenants and the landlord. This is an excellent way through which your property is handled professionally for routine maintenance and repairs.

You do not have to cover all those expenses and fees for property maintenance and inspection. There is no worry about void periods or chasing rental payments as you keep getting the rent on time. Click here if you wish to rent your property under a guaranteed rent scheme to a professional rental company.

How does a guaranteed rent program work?

In a guaranteed rent agreement, the middle tenant promises to pay the property owner a certain amount of money every month in exchange for having complete control over the rental property and its management.

The middle tenant takes the entire responsibility to:

• Advertise the property to attract renters.
• Handle all aspects of tenancy administration.
• Take care of any necessary property maintenance.
• Make sure the property complies with all applicable legal requirements.
• Handle any necessary legal actions if the renters occupying the property must be evicted.

The landlord and the middle renter agree to a fixed monthly rent of less than the property’s market value. It depends on the rental income from the property if it is high enough to turn it into a profitable venture, which can be done by considering an HMO.

Considering an HMO

An HMO Or House in Multiple Occupation includes renting your property to different tenants. This maximizes your rental income as you are turning a residence with several bedrooms into an HMO. This way you achieve a better income by renting out several single rooms to different tenants holding separate contracts.

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Benefits of guaranteed rent program

Landlords in the UK are becoming more interested in the rent-to-rent option for several reasons.

• It’s the best option available for landlords who don’t have the time or desire to be involved in any of the leasing processes.
• It guarantees a consistent, predictable income flow with reduced risk of dealing with arrears.
• There are no issues in dealing with damage and repairs at the property.
• There is less possibility of having to initiate legal eviction procedures.
• Both local and private companies can be chosen for the rent-to-rent scheme.
• There are no void periods for landlords because they receive the rent from the middle renter even when the property is vacant.

The rent-to-rent scheme is an excellent way to boost your monthly income, get peace of mind and make the most as a property investor.