What is a Guaranteed Rent Scheme and Is It Right for You?
November 2, 2024
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TL;DR
Guaranteed rent may appear slightly lower than peak market rent. However, landlords trade volatility for certainty. When you remove voids, arrears, and repair costs, guaranteed rent often delivers stronger net stability.
What’s in This Article:
- Why guaranteed rent can look lower
- The real cost of market rent
- How guaranteed rent changes net income
- When guaranteed rent makes financial sense
- FAQs about guaranteed rent levels
Introduction
Many landlords hesitate because guaranteed rent can look lower than open market figures. However, headline rent rarely reflects real profit. When you factor in voids, arrears, and maintenance, the comparison changes quickly.
Why guaranteed rent can appear lower
Market rent reflects peak demand. In contrast, guaranteed rent reflects long-term stability.
Providers price guaranteed rent to cover:
- Operational management
- Compliance monitoring
- Repair responsibility
- Vacancy risk
Therefore, the monthly figure may sit slightly below peak market pricing.
The hidden cost of market rent
Market rent carries income gaps that landlords often overlook.
In practice, landlords face:
- Void periods between tenancies
- Late or missed rent
- Legal delays during disputes
- Repair call-outs
As a result, the yearly total often drops below projections.
How guaranteed rent changes net income
Guaranteed rent replaces unpredictability with consistency.
Under guaranteed rent:
- Rent arrives every month
- Voids do not reduce income
- Arrears do not interrupt payments
- Repairs do not reduce cash flow
Because of this, many landlords value stability over short-term peaks.
As explained in our guide on guaranteed rent:
https://www.citywidehousing.co.uk/how-a-rent-guarantee-scheme-protects-your-rental-income/
Why demand supports guaranteed rent
Local authorities continue to rely on long-term leased stock. Therefore, demand for stable housing partnerships remains strong across the UK.
https://www.gov.uk/government/statistics
Because providers need reliable stock, they commit to multi-year agreements.
How CHG Handles Compliance for You
At Citywide Housing Group, we remove the stress of compliance by:
- Applying for and maintaining your HMO licence
- Arranging all safety inspections and certificate renewals
- Carrying out repairs to meet council standards
- Keeping your property ready for inspection at all times
- Providing consistent monthly rent with no void periods
How Our Guaranteed Rent Scheme Works
Step 1: Get in Touch
Contact us today by phone or complete our online form to schedule a free, no-obligation property consultation.
Step 2: Property Assessment
We’ll visit your property to assess its condition, provide recommendations for any necessary improvements, and ensure it meets all required standards.
Step 3: Compliance & Handover
We manage the entire compliance process, carry out any necessary repairs, and arrange for an inventory check before officially handing over the property.
Step 4: Consistent Rent Begins
Once everything is in place, we take care of the property management, and you’ll start receiving consistent rent every month.
Guaranteed rent vs yield chasing
Yield looks attractive on paper. However, volatility reduces real returns.
In contrast, guaranteed rent supports:
- Easier mortgage planning
- Cleaner tax forecasting
- Lower stress
More detail on long-term lease security appears here:
https://www.citywidehousing.co.uk/why-long-term-leases-benefit-landlords/
How Citywide Housing Group Supports Landlords
At Citywide Housing Group, we specialise in helping landlords secure guaranteed income with long-term leases. Our approach ensures:
Full Property Management: From tenant management to maintenance, we take care of everything so you don’t have to.
Compliance and Legal Support: We ensure that all your properties meet legal requirements and comply with housing standards.
No Hidden Fees: We believe in transparency, with no surprise costs—what we agree on is what you get.
Local Expertise: Our team is familiar with the Bradford housing market, ensuring you get the best returns for your property.
FAQs: guaranteed rent vs market rent
Not always. In some areas, rates match local averages.
Many agreements transfer repair responsibility.
Yes. Rent continues regardless of occupancy.
Terms depend on property type and condition.
How to Get Started with Citywide Housing Group
If you’re ready to secure fixed, reliable income with no voids or arrears, it’s time to join the growing number of landlords in Bradford benefiting from guaranteed rent schemes.
Contact Citywide Housing Group today to schedule your free property assessment and discover how we can help you unlock the potential of your property.
For more information, visit Citywide Housing or call us at 0113 323 0678.
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