Are you a landlord looking for a steady, reliable source of income? Are you fed up with dealing with unreliable tenants and void periods? If so, a guaranteed rent scheme could be the ideal solution.

Guaranteed rent is a type of contract held between you and a property management company. It’s designed to give landlords peace of mind by providing fixed monthly payments, regardless of whether the property is occupied.

At Stayful Property Management, we have years of experience in providing guaranteed rent for landlords across the UK. Read on to discover what to look for in a guarantee rent scheme and how to find the right company to work with.

What Is Guaranteed Rent?

A guaranteed rent scheme is a type of rental agreement between a landlord and a property management company. For a predetermined time, the company will pay you a regular monthly income while subletting the property.

The potential yield from a rent guarantee may be lower than what you could make as a private landlord. However, you’re assured a fixed rental income even when the property is vacant, or the tenants don’t pay.

Additionally, throughout the contract, the property management company will take care of everything for you. You won’t have to worry about finding tenants, fixing problems, chasing payments or dealing with evictions.

What to Look for in a Rent Guarantee Scheme

If you’re looking into rent guarantees, there are many factors to consider. Every property management company will offer different quotes, terms and conditions. So, it’s important to do your research before agreeing to rent out your second home.

When choosing the best guaranteed rent scheme for you, here are some of the most important things to look for.

Contract Length

Rent guarantee agreements typically involve long contracts. However, most property management companies offer some flexibility.

Opting for a longer agreement means you’ll avoid the hassle of finding a new tenant every 12 months. Additionally, the company is obliged to pay you for the duration of the contract, even during void periods. This means you’ll benefit from more financial stability and peace of mind.

However, lengthy contracts also mean that you’re bound to the company for a longer period. You won’t be able to sell your home, move back in or rent it out privately until the time is up. So, it’s important to consider the future.

At Stayful we offer rent guarantees for up to 5 years. We’ll work with you to determine the right contract length for your needs

Monthly Income

Another factor to consider is the potential rental yield. With your rent guaranteed for a pre-agreed period, you’ll receive a fixed income every month. This means you won’t be able to raise the rent until after the contract has ended.

Typically, the monthly payments won’t be as high with guaranteed rent as with private lettings. However, many landlords consider the financial security to be well worth the cut taken by the property management company. As every company will offer a different quote, it’s important to shop around.

Holiday let management companies, such as Stayful, tend to offer the best rates. We’ll provide you with an initial estimate as soon as possible after reviewing your application. We’ll then view your property and make a formal offer within 24 hours.

Terms and Conditions

Before making a decision, it’s important that you understand the terms and conditions of the guaranteed rent agreement. The contract should outline exactly what you are and are not responsible for as the owner. For example:

Insuring the building and its contents.
Ensuring the property is up to code and complies with all regulations.
Finding and vetting tenants.
Responding to tenants’ queries.
Fixing problems and making repairs.
Chasing up late or missed rent payments.
Handling emergencies and evictions.
General cleaning, maintenance and refurbishment.

A good guaranteed rent property management company, such as Stayful, will handle all of the above for you. If there’s anything you’re not clear on, ask before you sign the contract. Ensure that anything you agree to is put into writing.

How to Find a Good Guaranteed Rent Company

When searching for guaranteed rent companies, it’s always best to stay local. Local companies will be familiar with the area and have a better understanding of your property’s value. They’ll also be quicker to arrange an initial visit, and will be easier to contact when you need them.

If you know anyone who’s used a property management company, start by asking for personal recommendations. If not, you can search online to find guaranteed rent schemes in your area.

It’s important to read as many online reviews as possible. This will give you some insight into others’ experiences of the company (both landlords and tenants).

Contact Stayful Airbnb Management

Guaranteed rent is a great option for landlords looking for long-term financial security. At Stayful, our aim is to provide landlords with a secure, hassle-free way to earn a stable rental income.

We’ll handle every aspect of managing your property, from advertising to liaising with tenants. Your property will be professionally cleaned and maintained throughout, and we’ll cover all costs associated with usual wear and tear.

To find out more, contact Stayful today. Fill in our enquiry form, give us a call or reach us through text or email. We’ll be happy to answer any questions and provide an initial estimate.

What to Look for in a Guaranteed Rent Company