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All You Need to know about Guaranteed Rent Birmingham

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With most of the UK’s population preferring rental homes, renting your property to tenants as an added source of income is a smart move. However, collecting rent from tenants can be a hassling process. 

It is here that guaranteed rent comes into the picture. For the uninitiated, an agreement between the owner and an intermediary, most frequently a rental company, an agent, or property management, results in guaranteed rent.

It is when a person or business rents a property from the owner for a definite period with a promise to pay a set rent to the owner. Guaranteed rent has many benefits, including lower risk, reduced responsibility, increased peace of mind, and more. 

If you want to learn more about guaranteed rent, its background, pros and cons, and Birmingham rent apartment know-how, continue reading. 

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Guaranteed Rent for Landlords in Birmingham City Centre

Birmingham’s major business district is known as Birmingham City Centre, Central Birmingham, and town among locals. The Big City Plan is undergoing extensive reconstruction of the City Centre, which has resulted in the creation of nine new emerging districts and a roughly five-fold increase in the size of the City Centre.

The City Centre houses numerous landmarks and tourist attractions, including St. Philip’s Cathedral, the Statue of Queen Victoria, Hurst Street, etc. It also has many educational institutes.   

Birmingham City University maintains educational facilities in the City Centre, and the famous Aston University is situated there. Birmingham Metropolitan College’s New Technology Institute and Matthew Boulton College campuses are both in the Eastside region. 

On the periphery of the centre is Birmingham Ormiston Academy. Numerous high-rise residences for students and academic buildings are found in the vicinity. Therefore, the demand for apartments for rent in Birmingham City Centre is at an all-time high. 

However, you might only sometimes get the desired rent or find the right tenants at the right time. From saving on marketing and agents to utility bills, guaranteed rent helps you maximize your house rent in Birmingham. 

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Guaranteed Rent: Brief Background 

The concept of guaranteed rent emerged in the UK due to the lack of proper income strategies. The most prevalent issue for landlords is the fluctuation in the rental market. The frequent inability of tenants to pay the agreed-upon rent led to the rise of the guaranteed rent scheme. 

Bilateral contracts and marketplaces are the two major ways to reach a guaranteed rent agreement. 

Bilateral contracts are created when direct negotiations between property managers and landlords are possible. Such contracts may be beneficial when the parties are confident in one another and can readily agree on the amount. 

Property owners and managers can also reach an agreement through guaranteed rental platforms (marketplaces). Property managers compete with one another through these marketplaces, raising the cost charged and eventually paying property owners. Such marketplaces frequently make it quick and simple for landlords and property managers to strike a deal and sign guaranteed rental agreements by establishing market-derived pricing for the property.

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Guaranteed Rent: The Pros and Cons 

Before availing of the guaranteed rent Birmingham scheme, you must consider its pros and cons to see if it is the right choice. Therefore, here is a list of the pros and cons of guaranteed rent:

Pros 
  • Timely payments: Getting rent consistently on time is the main advantage of guaranteed rent. The third-party must continue to make a monthly payment to the landlord whether or not they successfully find tenants. As a result, landlords can stay relaxed during the agreement term without worrying about payments.
  • Eliminated or reduced utility bills: The third party shall pay all utility expenses upon executing the guaranteed rent contract. It is an excellent approach for landlords to cut costs. After all, costs for electricity and broadband may accumulate and lower revenues.
  • Convenience: Many safety and health rules must be followed whenever a tenant moves into a property. The obligation to execute all property rules passes to the third party after guaranteed rent has been agreed upon.
Cons 
  • Possibility of property damage: There is always a danger that the third party in a guaranteed rent arrangement won’t try to keep your property in good shape. The worst-case situation is that your property loses a part of its market worth due to being worn out. 
  • Absence of power: You essentially transfer all control to the third party when you sign a contract for guaranteed rent. They will choose the renters who will occupy the property, and if the tenants do not respectfully handle the property, there may be repercussions. Also, the third party’s choices are binding for the term of the contract.
Pluxa Property Got You Covered 

Guaranteed rent can be a great source of steady income for you. We provide multiple services to our clients, including guaranteed rent services in Birmingham that ensure you receive consistent rental revenue.

With many years of experience assisting landlords in obtaining the highest guaranteed rent, we have a solution to all your problems. Thanks to our expert property management services, your property will be rented at competitive rates. 
We also ensure your property stays well-maintained by conducting tenant verification, contract negotiations, and extensive reference checks. Therefore, contact us if you have an apartment to rent in Birmingham for the best possible deals and services.

FAQs

How to spot a rental scam when looking for a home to rent?

Rental scams usually quote way less for a property. Therefore, the best way to avoid such scams is by employing a rental agency, researching, inquiring from the people around, looking up prices on the internet, etc.

How long does it take to rent out your rental property?

Property management agencies can typically rent a house in 30 to 60 days, depending on the particulars of your place and its location. It’s typical for landlords to wait up to twice as long to rent out a property.

Should you buy low-cost rental properties?

Yes, you can invest in low-cost rental properties, given that you have a limited budget. However, make sure to conduct adequate research before investing in low-cost properties.

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