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The Benefits of Guaranteed Rental Services

Mar 16th 2023

In this post, we'll consider why you might consider a guaranteed rent scheme rather than a traditional let.

If you’re a landlord, often your financial stability is reliant on securing a steady rental income from your property. This can be worrying in times of economic instability, where one unlucky experience with unreliable tenants can put you and your family in a vulnerable position.

Finding tenants, dealing with any rent arrears, and managing property maintenance can also all be challenging as a private landlord, particularly if this is your first time attempting to let a property. Even more stress may be added if you’re in possession of a property which requires some work before it can meet the legal requirements of a let.

That’s where guaranteed rent services come in. In this blog, we’ll discuss the benefits of guaranteed rent services and how they can provide peace of mind for landlords.

What is a Guaranteed Rent Service?

A guaranteed rent service is a scheme where a letting agent or property management company pays a fixed monthly rent to the landlord, regardless of whether the property is vacant, or the tenant stops paying rent.

Essentially, the agent or company itself becomes the tenant, removing all uncertainty about whether the rent will be paid or how long there might be in-between paying residents.

The agent then finds tenants, manages the property, and deals with any issues that may arise during the tenancy period. Agents such as Let’s Rent in Bristol may also include extras such as working to bring run-down properties up to standard before finding tenants.

Discover the Full Details of our Guaranteed Rent Service in Bristol

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How Does Guaranteed Rent Work?

With guaranteed rent services, the letting agent pays the property owner a fixed monthly rental amount for a specified period (our contracts usually last between 3 and 5 years).

The agent then rents out the property to tenants and manages the tenancy. The rent paid to the landlord can be lower than the market rate, but the landlord has the peace of mind that they will receive a monthly income without the risk of rental arrears or void periods.

What Are the Benefits of Guaranteed Rent?

A Reliable Monthly Income

With a guaranteed rent service, landlords can rely on a regular monthly income, even during void periods or maintenance periods between lets. This means that landlords can pay their mortgage and other expenses without worrying about rental arrears or overdue payments.

 

No Void Periods

Void periods can be costly for landlords, especially if the property is vacant for an extended period. Guaranteed rent ensures that the property is occupied by tenants, reducing the risk of void periods.

 

No Tenant Issues

Acquiring tenants, worrying over property legislation, chasing late rental payments, and dealing with property issues are all things which can be time-consuming and stressful for landlords. Even more than a full property maintenance package, Guaranteed Rent companies take full control over these issues, leaving landlords free to focus on other things.

 

Long-term Rental Income

Guaranteed rent schemes are usually a longer-term option, lasting for up to five years. This provides landlords with long-term rental income, allowing them to plan and budget for the future. No more worrying about whether you can afford the family holiday next year or whether you’ll need to work overtime to cover the mortgage.

 

Full Confidence

Knowing that rental income is guaranteed can remove a huge source of anxiety for landlords. They can relax, knowing that their property is in good hands and that they will receive a regular monthly income without any hassle.

 

This service also takes away the need to stay abreast of new and existing rules and regulations for renting out properties. Your agent’s experience and expertise in the field will keep you on the right side of any legislation, ensuring the property and tenancy agreement are up to scratch and matters such as HMO licenses are dealt with far ahead of time.

How Does a Guaranteed Rent Service Compare to Traditional Lettings?

In a traditional private letting arrangement, the landlord is responsible for finding tenants, managing the property, and dealing with any issues that arise during the tenancy period. The landlord also receives the market rate for the property, which can be higher than the rent paid under a guaranteed rent scheme.

They may alternatively choose to invest in a property manager, who will deal with finding tenants and dealing with day-to-day property issues on their behalf, in exchange for a fee.

 

However, traditional lettings also come with risks. Landlords can experience void periods where no money is coming in, rental arrears, and property damage, which can be costly and time-consuming to resolve. In contrast, a guaranteed rent service provides landlords with a fixed monthly income and removes these risks.

Considering using Guaranteed Rent Scheme in Bristol?

Let’s Rent, one of Bristol’s leading lettings agencies, is now offering guaranteed rent schemes for properties in areas including Bristol City Centre, St Werburghs, Filton, Fishponds, and St Pauls.

Our property experts will give you a fair, consistent monthly payment while we bring the property up to spec, manage tenants, and take care of any problems. It’s a long-term, worry-free solution which suits many first-time landlords or those who come into property unexpectedly.

Learn more about our scheme or get in contact today to find out exactly how we can assist you.

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4.93 out of 5
based on 480 reviews
27th March 2024
Judith Cameron said:
Dealing with Adil, Usman and their team is always a pleasure and we're delighted to see Lets Rent grow from strength to strength.
15th January 2024
BRACE duo said:
It was a pleasure to liaise with Usman at Lets Rent and to have my party wall fence secured by your maintenance service. He was quick, polite and efficient in dealing with my request .
29th November 2023
MaryLawrencia Owusu said:
TO UZMAN I SAY THANK YOU FOR MAKING MY STAY COMFORTABLE..THANK YOU
1st March 2023
Abid Hussain said:
Very good Lettings company and polite friendly service on the telephone. I would recommend checking out Let’s Rent before other property agents.
21st February 2023
Jacqueline Graham said:
Re: Usman Ayub – Lets Rent Letting & Management Prior to meeting Usman, the experience in trying to rent property in Bristol for over 6 months was demoralising. A Let's Rent representative (Seb) contacted me by phone to say they'd managed to alter a few appointments for the viewing & I would be me by Usman. He was punctual & informative throughout prior to our entrance to the building. He informed me of the layout, security & access which therefore covered all the H&S criteria in case there was an issue. Once the viewing was over, Usman assured me that he will send over the documents via email for me to complete, which was actioned without delay. Throughout the legal itinerary & required information, he kept me informed which enabled me to clear up some issues the automated system rejected unbeknownst to me. Usman is a valid member of the team and the functionality of this business benefits with him as a valid member.
12th September 2022
Sam Price said:
Seb's been a great help throughout our tenancy with lets rent. He's managed to keep us informed and up to date on our ongoing maintenance during the year. He's very professional and undoubtedly will have a great future career.
7th September 2022
Sue Gunning said:
Brilliant!! Stress free, will go lets rent everytime,very polite and kept us informed off every veiwing and smoothly it all went.
31st August 2022
Michael Maxwell said:
Really genuine and nice employees. They have been great in communicating with all requests promptly and ensuring we get a great service.
31st August 2022
Richard Lewis said:
Thank you for all your efforts over the years! it cannot be understated how important your support has been to making this bearable!
31st August 2022
Tom leng said:
Adil and the team are fantastic. Professional and personable and always available. You couldn't ask for much more, I've recommended to friends and family.