For house owners, letting their property out for rent may not be an easy task especially if you are a new owner buying a property for rental purposes. You will want to get the rent regularly from your property, but your tenants’ circumstances may change. Their financial situation, job relocation, and such can change and they will have to relocate to some other place of their convenience.
You will be happy to know about the service provided by a guaranteed rent company that supports you to deal with any situations with your rental property for a fixed period. It starts when you give your consent to the property management company to rent your property to other tenants based on guaranteed rent schemes.
Benefits Of Choosing Guaranteed Rent Schemes
The most important benefit of choosing this scheme is that the landlord is assured of getting regular rent no matter whether his property is occupied or not by the tenants. This gives the owner the to overcome any hurdles involved in the property like voids, rent arrears, court proceedings, housekeeping, etc. This guarantees you to concentrate on your daily job with peace of mind.
Based on the agreement period, the company takes care of the property. So, the owner can go for any long-term contract without incurring any additional letting, management, or renewal fees. Also, the company takes the responsibility of taking care of the property and returning it to the owner in the same condition as when they took it.
How Does Guaranteed Rent Work?
When you give your consent to a property management company, technically they become your tenant. An agreement is made between you and the managing company and you won’t have to deal with the tenants.
Once the agreement is done, you will start to receive the rent no matter whether your house is occupied or not. Now you may think how they make a profit then. There is a trick here. They won’t be charging you any set-up fees or commission but they give you a rent which will be slightly lesser than market value.
This does not mean that you will be getting lower income than those who go with traditional service or goes alone. In this case, you are relieved of all the other issues, and no need to collect monthly rent from the tenants or go in search of new tenants if your house is not occupied. If you compare, you will be getting higher annual income from your property.
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How Does the Company Benefit?
They lease your property for a certain period, and they find tenants as the landlords. They make needed adjustments to get the maximum rent possible, for example, HMO where single tenants accommodate a room and share the common facilities.
If you are searching for a reputed property management company in South London, Croydon guaranteed rent service is offered by City Borough Housing company. They guarantee you regular rent for the contracted period no matter what happens and they take care of your property as the agreement starts between you and them. You can enjoy these services at no extra or hidden fee.