Anyone who rents out their property knows how difficult it can be to get paid every month, and this is sometimes due to the simple fact that they can’t always find tenants. Guaranteed rent for landlords is a realistic possibility, but let’s go over the details so everyone will know what it entails.
A middleman will come along and rent a property from a landlord, but once they’ve rented the property, they’ll turn around and rent out each room to a number of different tenants. By doing so, they’ll make slightly more per month than the rent due to the landlord, which means they’ll end up with a little extra money in their pocket. They may even offer extra services, like Conciergerie Airbnb and offer attractive add-ons. The biggest benefit the landlord will receive is the guaranteed rent every single month without fail because they will always be paid on time. There are a few more reasons why this type of arrangement will work in the landlord’s favour. When someone else is doing all the work it means the property will never sit empty, so landlords don’t need to worry about looking for new tenants every time someone wants to move out, which can often happen when lots of rental properties are on the market.
They don’t need to deal with multiple people, so they can just sit back and collect their money every month. Landlords also don’t need to worry if the middleman can’t find anyone to rent a room because they have a lease, and they’ll take the hit if they can’t do their job properly.
How Is Property Management Handled When It Comes To Guaranteed Rent Schemes?
Whether you are a landlord who is considering a guaranteed rent scheme, or you are a tenant who is looking to make a tidy sum from the rent-to-rent strategy, you will want to know how property management is handled. Keep on reading to discover more about guaranteed rent property management.
It is important to stress that guaranteed rent schemes differ, and thus the information provided in this post is simply a general outline. You will need to discuss this with the landlord and ensure everything is outlined effectively in the contract. Nevertheless, when it comes to guaranteed rental schemes, small maintenance and repairs are covered by the tenant or the letting agency – i.e. whomever the landlord has gone into an agreement with. It is imperative that the condition of the landlord’s rental properties is maintained. This is no longer the landlord’s responsibility. However, if the landlord wants to upgrade his or her property, or they want to carry out any significant work, you won’t have to pay for this. After all, it is still the landlord’s property. It is worth pointing out that there are insurance products in place to cover a Rent 2 Rent’er, i.e. someone who rents a property, guaranteeing payments to the landlord, while subletting the rooms to make a profit for themselves. Some insurance products will cover home emergency cover and incidents and call-outs up to a certain amount. Please note that you will only be able to claim for a certain number of incidents per year.
