A Guaranteed Rent Scheme (sometimes also known as Rent-to-Rent) entails a contractual agreement between a landlord and a company, an institution, a letting agent, or an individual. For a specified timeframe, the landlord agrees to relinquish their control and management over their property (with conditions & clauses for opt-out) in exchange for a guaranteed monthly rental income.
Thus, that company / institution / letting agent or individual rents the property from you, the landlord, and then sub-lets it to tenants while managing the full process. The tenants have no direct relationship with the landlord, and everything is handled by
the ‘main tenant’. It alleviates some of the overwhelming set of responsibilities a landlord has and works very well for:
- new landlords with little or no experience.
- landlords that are far from their investments.
- or investors that own several properties, estates, or HMOs where management can become overwhelming.