While there are various advantages to being a landlord, it may also be difficult. Whatever your existing circumstances, there will surely be challenges when leasing out your property, especially for those new to the buy-to-let market.
We recognise that the tasks might seem unending and take up much of your time, whether administrative work, dealing with difficult tenants, vacant periods, or repairs. What is the solution? A rent guarantee program.
What is a Guaranteed Rent scheme?
A property owner will contract with a third party, a firm (like Northwood), a council, or an individual, who will then be responsible for leasing the property. The property owner will delegate responsibility for subletting the property to renters to a third party, managing and maintaining the property, finding new tenants, and arranging maintenance for the property. Most significantly, the third party will pay a monthly rent to the property owner, even if the tenant does not pay the rent and even when the property is vacant.
The benefits of guaranteed rent:
Below are some of the benefits of guaranteed rent,
Fixed monthly date:
The annoyances of owning property do not end when you locate a renter; you may have to deal with an inconsistent tenant with their payment schedule. With rent guarantees, you’ll get your monthly return on investment on a set date every month for the contract term.
Guaranteed monthly income:
The program, by definition, assures you as a landlord of consistent monthly revenue for a set period. This assists investors in avoiding the danger of not being able to locate a renter for the property and so losing rent. Northwood, as the UK’s leading provider in Guaranteed Rent can contract the property for up to 3 years and rent will be paid on the same day every month, even when it is vacant.
0% commission rate:
The rent agreed upon is the complete amount you would get each month from your appointed third party. Over and above your agreed rate, Northwood will not charge you any commissions or administration costs.
There are no additional costs:
Whilst the property is tenanted, there are no additional costs, such as council tax, property bills, or the costs of finding new renters, which will be the third party’s obligation to fund. Regardless of how many tenants live in the property, no further set up fees will be charged, as is the case with traditional management schemes.
This may vary depending on your agreement with the broker and the services they provide; in certain circumstances, the brokerage business will perform the essential property management procedure on your behalf. This eliminates all potential property investments’ potential annoyances since the broker bears all of the necessary unattractive processes on your behalf.
Guaranteed Rent programs might benefit if the rental agency can continue paying your rent. Checking a letting agency’s credit and financial history is a good way to do full due research on any letting business offering guaranteed rent services.
If the letting agency goes bankrupt, issues may occur if they surrender debts they are not legally obligated to pay. Similarly, unless otherwise agreed, any fines levied due to a violation of regulations are ultimately due by the landlord. If you are looking for the best estate and letting agents in Oldham and East Manchester, with 100 offices across the UK and the financial backing of a FTSE 250 PLC, contact Northwood immediately.