Due diligence on Guaranteed Rent – 6 things to check

July 29, 2014

If you’re a landlord researching a Guaranteed Rent service, you’ll probably come across many different schemes.

There are new companies and individuals springing up daily who claim to offer a “Guaranteed Rent” service – some promising to take over your property for up to five years  – but they are not all equal!

Here at Northwood, we feel we have credibility to comment about Guaranteed Rent.

Our market-leading service has been operational for 19 years and is used by many thousands of happy landlords who simply want to “let and forget”.   With 80 offices around the U.K., we are registered with the Property Ombudsman and SAFEagent and maintain the highest possible standards across our network.

We care what our customers think of us, and the independent reviews we receive pay testimony to this claim.

Without understanding the nuances and differences, it is easy for landlords to fall foul of less scrupulous operators.

“Today’s Landlord” recently reportedthat landlords and tenants were left high and dry when a “Rent to Rent” agency absconded with all their money.

The fraudulent sub-letting agent, Mr Matthew James Money, was sentenced to an 18 month suspended sentence, after absconding with both landlords’ rents and tenants deposits.

Sadly these companies rely on vulnerable or mis-informed landlords to fall for their compelling sales pitch, or they are simply not experienced enough to manage the business.

Here are 6 things to check if you are thinking of using Guaranteed Rent:

1.  Check the company’s profile on DueDil.com.  How long have they been trading and what assets are behind the company?

2.  Check if the company has recognised client money protection* in place.  Ask if they are a member of a Property Ombudsman Scheme or SAFEagent. (*This means that clients’ monies are kept in a separate account and not used to fund the business).

3.  Ask to speak to other satisfied landlords and to visit one of their current properties to see how it is set up and running.

4.  Will they be putting a single occupancy AST tenant into your property, or will they be letting out individual rooms – potentially creating an HMO which may require licencing?

5.  How are the tenant’s deposits protected?  Which scheme is used?

6.  Search the social web for independent and impartial reviews of the company’s service.

The answers you receive to these questions will guide you as to whether what you are being offered is too good to be true.

In property, the price of ignorance can be very expensive and all landlords should do research on any company they are thinking of transacting with.

It’s always better to be safe than sorry.  Contact any one of our 80 branches around the U.K and feel free to ask them any questions you may have about our Guaranteed Rent service.  They will be only too happy to help you understand the benefits.

You can also watch our Guaranteed Rent animated video:

 

Related content:

Northwood’s Guaranteed Rent service endorsed by leading industry expert 

Property increasingly become first choice as pension hedge  

*DOWNLOAD our free guide:  How to find a professional letting agent*

Northwood is one of the largest and most recognised lettings agents in the U.K. and the leading supplier of Guaranteed Rent to give landlords complete peace of mind.

Find us on Twitter @northwoodUK or visit our YouTube Channel.

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