In these uncertain times, many landlords are choosing to work with agents who offer guaranteed rent and property management schemes. Yakub Dhuka, manager of London-based Aston Pearl Real Estate, explains why they are choosing to go down this route when it comes to letting their rental properties…
What is a guaranteed rental scheme?
It is where the landlords collect their rent right from the moment they drop the keys to the property off with us. This is because we oversee the whole process for them and guarantee they will receive their rent for the duration of the lease.
How does it work?
As the letting and estate agent, we take the headache out of the process for the landlord by managing absolutely everything. We find the tenants, vet them and then pay the rent into the landlord’s bank account; there are no late payments, no void periods and there is no worry that the tenant might not pay at all. We take on that worry. The landlord does not have to conduct viewings or inspections and the property is returned in the same condition as it was when we took it on.
How much does it cost?
There are no fees – landlords with apartments or houses to rent receive an agreed sum, which is often better than the market rental rate, and they are not responsible for any utility bills or council tax. Furthermore, we also take care of legal expenses and eviction costs, including arrears, should the need arise. This gives the landlord peace of mind, as well as the reassurance they won’t have to go through any lengthy eviction processes.
Which landlords might a guaranteed rental scheme be suitable for?
Any. From individual landlords seeking a premium service to those with 20 or 30 rental properties to manage, an arrangement like this could be ideal. It could also suit any landlords not wishing to have to keep abreast of the increasingly complex regulations around property lettings, as we deal with all of that. In our role as estate agent, we also look after distressed property for sale.
Why is this a good time to consider such an arrangement?
Since the start of the pandemic there have been issues with some tenants not being able to pay their rent. This is not a problem for landlords taking part in a guaranteed rental scheme. Eviction hearings are stacking up and there is a backlog of cases waiting to be dealt with once the courts resume – and there are still uncertain times ahead. A scheme like ours, which covers London and the surrounding area, and operates at three different levels, with varying lease lengths, could be the solution.
For more information visit astonpearl.co or call 020 3441 5733