Homes4u Rent Guarantee Scheme Explained
The landscape of the UK property market is constantly changing, and with fluctuations in rental demand, job losses and a global pandemic to contend with, it can feel like a worrying time to be a landlord.
In an ideal world, all landlords would have good and consistent tenants who look after the property and make each monthly rent payment on time, but if the past eighteen months have taught us anything, it’s that circumstances can change in an instant.
Due to the nature of the market in 2021, many landlords are taking steps to protect themselves and their income with Rent Guarantee Schemes.
But what is a Rent Guarantee Scheme, and how can it protect you? In this guide, we’ll provide you with all the information you need to make an informed decision.
What is a Rent Guarantee Scheme?
Whether you are a first-time landlord or are a seasoned expert with a packed portfolio, you’ll know the importance of having reliable tenants occupying your property.
By signing up to a rent guarantee scheme, many aspects of property management will be handled by a letting agent. The agent will sublet the property, deal with finding the right tenant and manage any issues throughout the length of the tenancy.
However, a diligent landlord knows that things can sometimes go wrong even with the best tenants, which can leave you with unpaid rent arrears if a property is left empty for a period of time.
What are the benefits of a Rent Guarantee Scheme?
Protecting yourself against a tenant’s failure to pay is paramount in the current climate, and should be an integral part of any landlord’s arsenal.
With a Rent Guarantee Scheme from homes4u, you’ll have complete peace of mind in knowing that even if your property is empty, you’ll still receive your income.
● Evictions will be handled for you
● Legal expenses covered up to £100,000
● Legal advice
● Nil excess
Alongside the rent guarantee scheme, it’s important to choose a property management service that suits your needs and can provide you with a stress-free and hands-off experience.
With homes4u, you can be assured that the tenants chosen for your property have been selected through careful due diligence and professional third-party referencing.
Do I need a Rent Guarantee for my portfolio?
Having a rent guarantee in place can be hugely advantageous for a landlord. Not only is your income protected, but you’ll be safe in the knowledge that your property portfolio is in safe hands.
There are a few points to consider before deciding on a Rent Guarantee Scheme:
● Make sure you have read the contract thoroughly before signing
● Ensure the company you choose has a proven record of success, for example, homes4u currently manage over 1200 properties with a managed arrears level of less than 2%.
● Clarify the company you choose has sufficient liquidity to absorb and cover any void periods on their side. This will protect you in the event of vacant properties should the worst-case scenario happen.
When considering a Rent Guarantee Scheme, ensure you are aware of the type of tenants who will be renting your property and ensure you are happy with any commercial contract between you and the letting agent before signing.
Why choose homes4u to look after your portfolio?
We have been working with landlords for over 30 years to offer award-winning services at affordable rates.
Our goal is the same as it always has been, to make tenancies as straightforward as possible for both landlords and tenants.
When it comes to property management, we know a one-size-fits-all approach doesn’t work, so you’ll receive support from our dedicated teams depending on your needs.