Our Guaranteed Rent service includes professional letting and management and the most financial security. It is ideal if you are looking for the stability of a fixed income with no breaks or gaps and prefer low risk and is often the preferred “let it and forget it” solution for the following:
- Purchase of a Buy-to-Let investment property
- Letting a property that is highly mortgaged or where non-payment of rent or periods when the property is empty without rent would cause financial hardship
- Where a property has been on the market for sale but has not sold and the owner(s) want a mechanism that enables them to move to a different property
- Relocating for a temporary period maybe 1 to 3 years (e.g. with a work contract or the armed forces) and wanting to rent out your home for that period
- Going to live abroad with a view to emigrating but do not want to sell your UK property
- Couples who have two properties between them and are looking to move in together and let one of the properties out
- Where an elderly relative owns a property but is moving into care or going to live with family
- A property has been inherited and a monthly income is preferred
What is it?
The property owner receives a guaranteed annual rent (for normally 1, 2 or 3 years at a time) payable in fixed monthly amounts direct from Northwood with a fixed rent start date.
The rent is payable to the owner even if the occupier does not pay the rent and, unlike any rent guarantee policies, even if the property becomes empty from time to time.
There are absolutely no fees, commissions or hidden extras to pay.
The key difference between Guaranteed Rent and more traditional services is that it is a contractual agreement between Northwood and the property owner (the landlord) in which we effectively become the tenant though we never move in.
Why Guaranteed Rent?
Guaranteed rent start date
No matter how long it takes for us to find the right tenant, we’ll start paying rent a set number of days after the property is signed over to us with all necessary certificates, all works completed, fully cleaned and ready for a tenant to potentially move straight into.
Letting a property is an unpredictable process and there are things outside a landlord’s control, but which can substantially affect and reduce their overall rental income. Sadly, couples split up, people lose their jobs, prospective tenants sometimes pull out of lettings because their circumstances change and even the best of tenants decide to move on. There are usually empty or ‘void’ periods between tenancies when no rent is received, tenants can be late making payments (sometimes very late) and occasionally there is a need to take legal action.
On a standard letting service, all these things increase the landlord’s costs and significantly lower their income. With our Guaranteed Rent service though, Northwood takes over these risks and the property owner continues to receive their fixed monthly rental payments set out in the contract.
No fees or commissions
There are no charges for setting the contract up, no tenant introduction fees, no commissions and absolutely no ‘hidden extras’ to pay.
Legal costs covered
Occasionally, there can be a need for court action to recover unpaid rent or possession of a property. This can be costly and time-consuming with court fees of £335 (August 2019) and a legal process that takes around 4 to 4½ months. Northwood will meet all the legal costs and handle the court process and the landlord will still receive continuous monthly rental payments.