Guaranteed Rent or “Rent-To Rent” is a unique model that is becoming increasingly popular with landlords who want a hands off guaranteed rent in Nottingham. There have been many schemes in existence for many years in the socially rented sector (where the Council guarantees the rent) but it has increasingly become popular in the Private Rented Sector with many providers offering landlords guaranteed rent in Nottingham. So how does it work? The guaranteed rent company becomes the tenant and guarantees the landlord’s rent, offering an assured monthly income, with free management and maintenance. In exchange they are given permission to rent the property out, often by the room or on a short term basis. This can create a win-win situation and offer landlords a fantastic passive income.
We have been operating our own guaranteed rent scheme for many years and we’ve got many very satisfied landlords and agents. We have, however, heard many horror stories of amateurish or rogue operators in the market where the landlord ends up locked into a long term contract with a non-paying tenant. A horrific situation, but with some careful planning can be avoided, so how do you do guaranteed rent deal in Nottingham successfully?
Due Diligence: Complete detailed due diligence. The contract is only as strong as the financial strength of the provider. Always take references, established guaranteed rent in Nottingham companies like us will be more than happy to supply references. Other forms of due diligence you can do is check companies house, web checks, credit checks, social media or even ask to visit houses the company operates. The more due diligence you carry out the better…
Sustainability: Of course the rent will be a less than renting it out yourself however trying to squeeze the guaranteed rent company is going to lead to an unsustainable deal. Voids, maintenance, cleaning, dressing, all these items cost money. A professional guaranteed rent company will factor these in and come up with an offer that reflects the true cost of doing business. A successful deal will allow for fair profit and be sustainable throughout the deal.
Don’t Always Take the Highest Offer: We have seen many super enthusiastic new companies make big offers for houses that will never stack up. Six months later and after a few voids, they are looking to get out of the deal or have defaulted on rent. We often say no to deals and are famous for using our spreadsheet, the numbers never lie. A good provider will actually share their profit margin numbers with you.
A Clear Plan: The guaranteed rent company in Nottingham should have a clear plan of how they will fill the house. Generally, it should involve dressing and giving the rooms a light refurbishment and marketing it to professional / corporate tenants. For instance, a student house turned into a professional house share is a classic one. Would you really risk your property to somebody who doesn’t have a plan?
Value the Extras: Not all guaranteed rent deals are the same. Not paying agent fees, maintenance, cleaners all these items are worth a lot of money to you. Factor them in and read the contract. As a standard we provide weekly cleaners, free maintenance up to £250, no agent fees and more… It all adds up to a very good deal, yes sure the headline rent will be lower but the savings to you are massive.
Value Your Time: Yes, you going to earn a lot less money by doing Rent to Rent, rather than operating the house yourself but the time savings can be huge. Less calls about minor maintenance jobs, hassle of non-paying tenants and doing viewings. If you an agent doing guaranteed rent deals will make you substantially more profitable and you can continue to make money out of properties without the work. How much is your time worth?
By carefully selecting your provider, a guaranteed in Nottingham rent deal could be the best thing you ever do, with your property protected and an assured monthly income, allowing you to relax and enjoy life. If you would like to talk about a property you have in Nottingham and are considering a guaranteed rent offer for contact Mike Smith firstname.lastname@example.org and we can help you with it.