Guaranteed Rent in London

Guaranteed Rent in London

Are you a landlord in London struggling to get a fixed monthly rental income from your property? If yes, opting for a guaranteed rent scheme would probably be your best bet. Whether you’re the owner of a buy-to-let property or planning to rent your house out, choosing such a strategy can help you enjoy a multitude of benefits. Let’s take a detailed look at guaranteed rent schemes.

What is a guaranteed rent arrangement?

In a guaranteed rent contract, the landlord rents out his/her property to a letting agent, a property management company, or an individual. The renter agrees to pay the landlord a fixed monthly rent for a specific period. As per the arrangement, the renter then becomes the property’s landlord and is responsible for subletting and managing it. 

The entire process creates a win-win situation for both the actual landlord and the tenant. The tenant sublets the property and gets to keep the rent paid by the subtenant(s). And the landlord receives a fixed monthly rent from the tenant throughout the agreement even if there’re void periods or the tenant doesn’t receive rent from the subtenant(s).

Guaranteed Rent

Advantages and disadvantages of guaranteed rent for the property owner

Here are the major pros and cons of choosing a guaranteed rent scheme.


  • The most significant benefit of entering into a guaranteed rent arrangement is that you can rest assured of receiving a fixed, timely payment each month.
  • You don’t need to deal with the stressful responsibilities of managing the property, such as paying utility bills, property maintenance, etc.
  • You don’t have to go through the time-consuming process of tenant screening.
  • You aren’t responsible for addressing the subtenant’s complaints, queries, and questions (s).
  • The tenant will take care of the eviction process and court fees if need be.


  • If the tenant doesn’t manage or maintain your property correctly, it may ultimately end up damaging your property.
  • If you don’t properly analyze the tenant’s credibility before agreeing with it, there might be a risk of entering into a scam.
Guaranteed Rent

Summing up

In a guaranteed rent arrangement, the landlord’s monthly rent can be lower than what the property could earn. 

Even then, it guarantees a fixed monthly income and avoids all the responsibilities mentioned above. Just be sure to review the tenant thoroughly before making any final decision to avoid potential future issues.

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Any problems within the flat are dealt with within 24/48 hours and their communication is brilliant. I just cannot fault them.
by Dean B
Tenant, Dreytons
Michelle and her colleagues at Dreytons are excellent, diligent, and willing to go the extra mile. Dealing with them has been an absolute pleasure. Thank you guys.
by Rowena B
Housing Manager, Capital Letters

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