Are you a landlord in Sheffield 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.
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).
Here are the major pros and cons of choosing a guaranteed rent scheme.
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.