Right now let's try to answer a quite essential question: what exactly are such guaranteed rent schemes? Basically such a scheme really brings about landlords signing over a particular property to a reliable agent in exchange for such a fixed amount which is agreed, and for the exact period of time. Any agent should look after such a property. Besides, such letting agents get any profit that they really make after they have paid a landlord. Is it enough for you? For sure, various unscrupulous letting companies use the uncertainty in the modern letting market. This way these letting agents generally earn money from honest landlords.
To my mind the first issue is that you may need to trade your peace of mind for gaining less income from your property. Even though you surely know that the property is making you money, whether it's occupied or not under your guaranteed rental, at the same time the monthly profit won't be as much as you are able to have on the open market. Essentially, you are paying the letting agents for the risk of not being capable to let your property. In addition, this is generally going to be reflected in the fee.
But there are numerous essential issues which you have to know. Though you avoid that job of keeping your property occupied and transmit it to someone else under a guaranteed rental income scheme, but you have all of your normal owner's duties, for example like health and safety. According to my personal experience numerous guaranteed rental schemes do cover the costs of daily repairs, but it is essential for you to check the small print. You have to bear in mind that any letting company is in that sort of business to earn money. That's why all of extra expenditures will affect your payment from your letting agent. Besides, you need to pay the leasehold fees, such as ground rent and also service charges.
If you decide on choosing a guaranteed rental income scheme, the most vital thing that you should do is shopping around. I do not advise you to decide on the first available agent. And thus when you realize the exact amount of income you are able to get from letting your property through your guaranteed rent scheme, I counsel you to think about whether you are capable to afford it. Furthermore, any real estate owner is able to make around twenty per cent less than on our open market. I think that it is wise to utilize a short term guaranteed rent scheme, because you have an option to change the letting agent.
