Here I will answer the main question: what specifically is a guaranteed rental income scheme? Commonly this kind of scheme actually leads to homeowners signing over an exact property to any reliable letting company in return for such a fixed amount which is agreed, and for a specific period of time. Any letting agent should watch over this property. And such agents get any profit that they clearly make after they have paid you. Does this sound perfect? However, different dishonest agents use the uncertainty in the modern letting market. And thus such agents usually make money from unconcerned real estate owners.
As far as I know the most crucial issue is that you need to trade your individual calmness for gaining less profit from the property. Though you surely are aware that your property is making you money, no matter whether it's occupied or not under your guaranteed rent, at the same time your monthly profit won't be as much as you are capable to have on the open market. In essence, you are paying your agent to take on the risk of not letting the property. Furthermore, that is commonly going to influence the fee.
But there are some crucial things that you must know. Even though you evade the duty to keep the property you own occupied and pass it to other individual under a guaranteed rent, but you have all of these traditional owner's obligations, for instance like safety and health. According to my personal experience many different guaranteed rental schemes do cover your expenses of daily repairs and maintenance, but it is crucial for you to look through the small print. You need to know that your agent is in business to receive revenue. That's the basic reason why your added charges will be reflected in the payment from the agent. What's more you must pay all the leasehold fees, such as ground rent and service charges.
If you think over choosing a guaranteed rental income scheme, the first thing which you must do is shopping around. It is not good for you to go to the first available agent. Thereby when you realize the exact amount of money you are able to generate from letting the property you own with the help of a guaranteed rent scheme, I strongly advise you to think over whether you are able to afford it. What's more, any real estate owner is able to make almost 25 per cent less compared to the open market. I think that it is better to prefer a short term guaranteed rent scheme, because you are able to change the agent.
