One of the biggest burdens for property owners is not having a regular source of income; tenants paying their rent late or failing to pay it, rental prices dip, or property failing to generate rental income.
Are you facing the same problems with your property investment in London?
Then you should look for a guaranteed rent scheme in London and associate with professional property management guaranteed rent agents or companies to overcome the hurdles.
But what is guaranteed rent property management?
How can you get guaranteed rental income properties?
Let’s find out.
Guaranteed Rent Scheme London
Guaranteed rents in London are when a company or individual, like a letting agent, takes on the management of your property and pays you a fixed monthly income over a definite period, guaranteeing the income.
The letting agent is responsible for renting and managing your property to other parties and paying you the agreed rent.
Letting agents can secure the rent payments through an insurance policy or guarantee, and a few agents have their rent backed by the local government.
Even when the agent is backed by a professional insurance policy, as with most insurance policies, you still are at risk that the insurance company may not pay because of their terms and conditions. This can still risk the guaranteed rent.
A few agencies guarantee rent payments by paying minimal rates to landlords and charging high rents to tenants with no insurance policies or backing from the local government.
But because of the pandemic wave, many of these letting agents defaulted their payments to the homeowners. Some even reduced the rent as they couldn’t sustain the guaranteed rent when the tenant hadn’t been able to pay.
Also, your rent will not be paid if these agents go into liquidation. Therefore, there’s no guarantee of the rent.
So associate with professionals to minimize the risk of a guaranteed rental property investment scheme.
Guaranteed Rent Letting Agents in London
The letting agent is responsible for paying your rent, regardless of whether the property is being used. The deal is helpful for you during the difficult times when tenants are finding themselves out of work or unable to pay the rent, especially during the pandemic.
But a reputable letting agent can handle all the tenancy issues for you with guaranteed rent—irrespective of market change—and continue to ensure the rent is paid timely throughout the term of the agreement and until vacant possession of the property.
The rent guarantee scheme in London can help remove the fear of having an empty property. As vacant properties don’t bring in any income, and if there is a long gap between tenancies, you could potentially see your profits decline.
Guaranteed rental can take away the hassle and give you peace of mind. The letting agent must take care of damages to the property as they must return it to you in the same condition.
Not maintaining the property can break the agreement between the two parties, resulting in legal troubles for the letting agent.
A letting agent must comply with the laws and compliance issues you would generally deal with to save time and money.
Guaranteed Rent London | Rental Income
Guaranteed rent is calculated in different ways. The letting agent takes into consideration the following:
- Location
- Number of bedrooms
- Size of the property
- Decorative condition and aesthetics of the property
Once all these factors are checked, a proper calculation of the property’s rental value can be estimated.
The value paid is less than the open market, as it balances out the additional costs of renting out without guaranteed rent.
Additional costs include inventory, empty periods, tenants’ finders fees, damages, rent arrears, and legal costs for eviction.
But by getting in touch with a professional, guaranteed rent company, you can minimize your additional expenses and get the best deals.
We at Pluxa Property rent directly from agents, landlords, and property developers and provide excellent, guaranteed rent solutions.
If you want to receive guaranteed rent payments and ensure your properties are managed to the highest standards, we can offer you everything.
We can accommodate people traveling on business and family trips in our serviced apartments across London. At Pluxa Property, we remove your hassle of dealing with tenants, maintenance issues, and rent payments so you can enjoy your property investment hands-free.
If you own a property portfolio or just one property in London, we provide 5-star service, and everything is streamlined to the highest standard.
We also ensure you get no rental gaps, and maintenance is covered with finesse to ensure a 100% guaranteed steady income stream.
Connect with our team today, learn about the guaranteed rent income scheme, and get the best deals and rates for your rental property.
FAQs
Which letting agent online in London is trustworthy?
Out of multiple letting agents in London, you can choose P&A Property Sourcing. Our services can help you make great property investment decisions and achieve the most from the guaranteed rent business model. We can turn properties into luxurious homes for excellent stays. Not only can we give you guaranteed rent, but we can also uplift your property’s value. Our professional team takes care of tenants and manages the property. As a leading property deal sourcing and packaging company, we stand out from the rest and ensure that you invest in properties offering a high yield.
Where is the best place to buy property in London to rent?
Out of multiple locations in London, only a few are great and offer the possibility of high ROI and an excellent environment for rental property investment. Here are a few areas: Luton, Hackney, Wandsworth, Whitechapel, Southall, Battersea, Royal Docks, Kilburn, and Vauxhall.
What is the best way to get cheap rent in London?
The best way to get inexpensive rent in London is to consult a professional agent to help you get the living space within your budget. Once you clarify your requirements, the agent can provide you with desired solutions to help you get the best rental deals in London.
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.
