Guaranteed Rent - Too good to be true?
Posted on 18th December 2019 at 15:34
Guaranteed rent - too good to be true?
One thing that puts a lot of landlords off short-term rentals is the fear of an empty property. Vacant homes don’t bring in any money, and if there are long gaps between guests, or if guests only stay for a short period of time, landlords could potentially see their profits begin to tumble.
To ensure this doesn’t happen to our landlords, and to put their minds at ease, we offer guaranteed rent. Providing landlords with an assured income, and making short-term rentals even more attractive, guaranteed rent is a huge incentive for landlords looking to boost their returns. But is it too good to be true? Keep reading to find out.
What is guaranteed rent?
Guaranteed rent is when an individual or company takes on the management of a property from a landlord, promising them a fixed rental income in return. During the period that the property is managed by the individual or company, they’re responsible for renting it to other parties and for paying the landlords the agreed rent.
Guaranteed rent is a great option for landlords who want to protect their income. Knowing they have a fixed amount coming in every month ensures property owners are able to pay their mortgage and meet other financial requirements.
Guaranteed rent schemes are generally offered by companies that manage properties let on a short-term basis. This helps landlords to manage their finances and ensures they’re not left out of pocket by long periods of vacancy.
How is guaranteed rent calculated?
There are various ways that guaranteed rent is calculated. This can vary from company to company. In general, the individual or company that takes on the management of your rental property will look at where it is, how many bedrooms it has and the decorative condition of the property. They’ll use this information to calculate the rental value of the property and give you a percentage of that value every month.
The company or individual that takes on the management of your property will be responsible for finding tenants and letting out the property. They’ll take care of check ins and check outs as well as the general maintenance of the property.
How can we guarantee rent?
Short-term rentals are becoming increasingly popular in the UK. Between 2015 and 2017, short-term rentals rose a staggering 200% in 10 UK cities. In London there was an incredible four-fold increase in the number of listings on the largest short-term property rental portals.
This rising demand for short-term lets, and our expert knowledge and experience, means we can be confident of letting your property out and providing you with a fixed income. Even if your property is empty for a period of time, our guaranteed rent scheme ensures you’ll receive the income you need to meet your financial commitments.
Find out more about our guaranteed rent scheme, and learn more about the services we offer, by exploring our site or getting in touch with a member of our team.
Tagged as: airbnb, guaranteed rent, landlords, Property management, serviced accommodation, short term rental
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