In the United Kingdom, residents prefer renting space rather than owning one. Approximately 23.5 million household residents are either social renters or private.
If you are looking to rent out your property and receive a steady rental income flow, it’s great for you to start the process today.
You can avail of guaranteed rent services from professional companies or agents to help you achieve your financial goals. It can also help you escape the hassle of looking for and managing tenants.
But what does a rent guarantee scheme have to offer?
How can you, as landlords, benefit from it?
Let’s find out.
Peace of Mind with Landlords Guaranteed Rent
If you own a property in the United Kingdom, you can avail the benefits of the rent guarantee scheme, also known as a rent-to-rent scheme.
Being a landlord, you can sign over your rental property to a company, letting agent, institution, or individual for a specific time in exchange for a guaranteed income.
Under this scheme, the rental income comes in regardless of whether the property is occupied or if the tenants are in arrears.
The organisation or individual rents the property from you and then sublets the property to tenants and manages the tenancy and property. The property renters have no direct relationship with you, and the middle agents or companies handle everything.
How do These Schemes Work in the UK?
In a rent-to-rent arrangement, the middleman signs a contract with you stating that they promise to pay a set income and take full control of the property and its management.
The middleman will market the property to find renters, manage tenancy administration, handle property maintenance, ensure that the property is compliant with legal requirements, and take care of legal proceedings if the tenants in the property need to be evicted.
The middle man agrees to a guaranteed rent with you below market value for the property. The success of a guaranteed rent scheme is based on whether the middleman can achieve a high rental income from the property to handle expenses and generate a profit.
That’s why you must associate with professionals managing the guaranteed rent scheme for years who have experience attracting prospective clients.
Here are the options you have to complete the guaranteed rent deal.
Who offers them?
Public and private sector organizations operate guaranteed rent schemes.
Local authorities
Many councils in areas with high demand for housing offer guaranteed rent schemes to increase their supply of social housing stock.
Under the arrangement with a local authority, the council can become your ‘tenant’ and use the property to provide space for those in need of social housing, e.g. the homeless, refugees, and those who qualify for council tenancies.
In return, you receive a guaranteed monthly rental payment one month in advance during the lease period, even if your property is vacant. The local authorities perform regular inspections, professional property management, and guaranteed vacant possession.
Many local authorities outsource the work to other intermediary agents who communicate with private landlords and take care of property maintenance and management on their behalf.
If you want to lease directly to a council, then you need to provide your own compliance documentation and ensure that your property meets set quality standards before entering into an agreement.
By contrast, if you go through a private facilitating agent, you don’t need to worry about the refurbishment and the maintenance as it’s a part of the terms of service with the management company.
Lettings Agents or Professional Rent-to-rent providers
Many guaranteed rent letting agents (smaller or independent chains) and guaranteed rent providers offer excellent services for you to escape the hassles of tenant search and management.
Unlike council-run schemes, these are for-profit services that source tenants from the privately rented sector via conventional property marketing channels.
During the lease term, an agent normally agrees to take care of everything regarding property maintenance, management, and compliance, while offering further complementary services like interior design and redecoration.
The agent controls your asset for the agreed period and offers a monthly payment guarantee.
Council Guaranteed Rent Schemes for Croydon Landlords
The council-guaranteed rent for landlords can be a great opportunity for you to rent your property in Croydon and generate a steady rental income.
As you know, under the council-guaranteed rent scheme, the council becomes your ‘tenant’ and can use your property to provide space for the homeless, refugees, and those who qualify for council tenancies.
Once your property is approved for the guaranteed rental scheme, you can avoid managing it.
But you require professionals who can help you with the investment process and assist you in procuring a great landlord-guaranteed rent deal.
We at Pluxa Property offer a guaranteed rent service that guarantees you regular rental income in Croydon. We understand your problems with years of experience in helping landlords get the best-guaranteed rent deals; we understand your problems.
Our professional property management services guarantee you competitive rent and cover different aspects of property management like tenant screening, contract negotiation, and thorough referencing.
FAQs
Is Birmingham a safe city to live in?
Birmingham is considered a safe place to live in England. But, a few notorious areas aren’t as safe. Areas like Handsworth and Lozells had higher reported crimes than other parts of Birmingham. You should choose a safe time to travel in these areas to avoid unfortunate events.
As a foreign traveller, how safe is Birmingham, England?
It is safe. But the safety also depends on where you live in Birmingham and what time of day or night you travel. Birmingham is not a dangerous region compared to other cities in England. You can look at the crime rate of different areas of the region to avoid visits to areas with higher crime rates.
What are the posh areas in Birmingham?
Edgbaston, Bearwood, Holloway Head, Jewellery Quarter, and Kings Heath are a few of the posh areas in Birmingham. Apart from these, multiple other safe and posh areas in Birmingham offer great opportunities for you to invest in property.
Peter Juhasz is the founder of Pluxa Property, the biggest property investment company in UK and Group CEO of AIP Capital Group and a property investment expert with over a decade of experience in the UK market.
He built a successful property company using innovative cashflow strategies like Serviced Accommodation and HMOs, scaling to 200 units in four years.
Peter leads a team specializing in property and business acquisitions across various sectors. A former co-host of “Cashflow With Property,” he shares his expertise in real estate investing and business scaling.
He is committed to continuous learning and helping SME owners and investors maximize their returns, driven by his passion for empowering others to achieve their financial goals.
To learn how Pluxa Property can help you in UK property investment, contact our experts.
