At the moment I will answer the basic question: what precisely are such guaranteed rent schemes? Basically this kind of scheme definitely entails homeowners signing over an agreed property to a good letting company in return for that fixed amount of money which is agreed, and for a limited period of time. Any agent needs to watch over such a property. Besides, such letting agents get any profit which they actually make after they have paid a homeowner. Does this sound perfect? For sure, different dishonest letting agents utilize the existing uncertainty in the letting market. And thus all of them commonly make profit from unconcerned landlords.
As far as I can judge the most important issue is that you may need to trade your personal calmness for making less money from the property. Although you definitely know that the property is making you an income, no matter whether it's occupied or not under a guaranteed rental, therewith your monthly income will not be as much as you are able to get on the open market. Basically, you are paying your letting agents for the risk of not being capable to let your property. In addition, this is commonly going to be reflected in your fee.
I consider that there are a couple of vital facts which you need to know. Even though you get rid of that task to keep your own property occupied and pass it to other individual under any guaranteed rental income scheme, but you have all of these traditional homeowner's tasks, for example like security and health. In fact, many various guaranteed rent schemes really cover your costs of regular repairs or maintenance, but it is necessary for you to check the small print. You need to consider that the letting agent is in this type of business to gain profits. That's the basic reason why some supplementary expenditures will influence the payment from the letting agency. Besides, you have to pay the leasehold fees, such as various service charges and ground rent.
If you consider choosing a guaranteed rent scheme, the most important thing which you must do is shopping around. It is not good for you to decide on the first available letting company. Thus when you realize the precise amount of profit you are able to get from letting the property through any available guaranteed rent scheme, I strongly advise you to consider whether you can afford it. And finally, any homeowner is capable to make almost 20 per cent less compared to the open market. In my opinion it is smart to prefer a short term agreement, because you have an option to change the letting agent you are not happy with.
