While there are countless benefits of being a landlord, the challenges cannot be overlooked. Regardless of the current circumstances, there will always be hurdles down the road. Especially when you’re looking for a tenant, the internet will be an overwhelming space to find one. Whether dealing with an already problematic tenant, the admin work, or void periods, the responsibilities are endless.
So what’s the solution to all this? Well, we believe in investing in a guaranteed rent scheme. In this feature, we will shed light on the incredible benefits of guaranteed rent schemes. But before digging into the crux of the discussion, it’s important to begin with a formal introduction.
What is a Guaranteed Rent Scheme?
Herein a property owner will enter into a contract with the third party, which could be a company or a person who claims responsibility for maintaining the property. This is when the property owner will hand over the responsibility of the property to the third party to the manager, who will take care of everything.
This will be inclusive of managing the property bills, finding a new tenant, and even maintenance of the property. Simply put, the third party will pay a fixed rent to the property owner. Guaranteed rent schemes are highly beneficial, as you get a fixed rental income every month.
What Are the Benefits?
Understandably, every property owner is concerned with financial security. This is why there has been a staggering increase In the demand for such schemes. Below, we have highlighted a few more benefits of this scheme:
- Guaranteed Rent Payments
Since the third party will claim responsibility for the maintenance of the property, they will pay you a fixed rental income every month. Regardless if they find a tenant or not, you will get the rental payment for sure. You can enjoy this income without having to work hard for it.
- Zero Percent Commission
You can rest assured that the complete rental income will be yours. In other words, you won’t have to worry about paying commission to anyone. Usually, the third party involved will agree to a little to no commission percentage. However, if you find somebody asking for it, avoid entering into a contract with them.
- Free maintenance
What’s more costly than the property itself is its maintenance. And here, the third party will look after the maintenance work according to the agreement. The guaranteed rent for landlords is a big relief, as they can get rid of the maintenance work easily. The third party will take care of this work without worrying about anything.
- No Hidden Expenses
Any additional costs such as the property bills, council tax, or any other cost linked with looking for a new tenant will be on the third party. As per the agreement, they cannot ask you even for an extra dollar. So you can sit back, relax and earn the rental income every month. No wonder this is stress relieving for the landlord looking for tenants online.
