Being a landlord is challenging, and one of the biggest concerns many landlords have is ensuring they receive rent each month. If you are dependent on rental fee income to pay your buy to let mortgage each month, you need this income. All landlords are keen to avoid void periods, but sometimes there is nothing, or very little a landlord can do to prevent this situation from arising.
Many landlords are reliant on rent to pay their buy to let mortgage
However, with guaranteed rent, landlords can feel more confident about their ability to let property. Even if you have an empty rental property, with guaranteed rent, you can be optimistic about generating the income you expect and need on a monthly basis.
It doesn’t take much in life to result in a tenant experiencing a change in circumstances. Even outside of the current health situation in the country, conditions can change in an instant, and without guaranteed rent, landlords are at risk. However, when you know rent is guaranteed regardless if you have a tenant or if that tenant pays on time or not, you can reduce a lot of the stress associated with being a landlord.
A guaranteed rent scheme often leads to a better standard of tenant
A guaranteed rent scheme often provides benefits to landlords with a better standard of tenant in the rental property. With the agent taking on a higher measure of risk with this scheme, there is pressure on the agent, and they are motivated to find a better standard of tenant.
The standard of tenant significantly impacts landlords and the condition of the rental property. With the guaranteed rental scheme in place, agents will vet and review tenants, looking for tenants who can be trusted. All landlords should vet tenants, but they often lack the time or expertise to carry out this step.
It is usually in a landlords’ best interests to leave this work to an agent, but with the guaranteed rent scheme, there is a more substantial reason to leave this step with the motivated organisation.
An overview of the benefits landlords can expect from using a guaranteed rent scheme include:
- Not having to worry about void periods in their property, and a reduction in void periods
- Not having to fret about arrears
- Not worrying about late payments and the knock-on effect of these late payments
- A guaranteed contractual start date for the scheme
- A significant reduction in stress and concern about generating monthly income
The role of a landlord will never be risk-free, but it is possible to minimise the risk a landlord faces in their role. As an agent who has helped many local landlords, we have expertise and confidence in ensuring landlords satisfy tenants and care for their rental property.
At Foxes, we provide a range of property management services aimed at ensuring rental properties are in excellent condition. Anyone looking for guidance on end of tenancy cleaning should contact us today.