Updating post from Reddit.
Morning All,
I just wanted to get people's experience/opinions on the guaranteed rent schemes.
I'm soon going to be working abroad for 12 months and want to let my house whilst away.
I want 0 responsibility for my house whilst away so naturally the guranteed rent schemes using management companies make sense
However, for the full bells and whistles of management they want nearly 18-20% of the rent.
I'd like the peace of mind of having the rent each months and appreciate that comes at a cost. I also don't want to deal with the day to day stuff from tenants. My other concern is, if they're awkward at the end of the tenancy, the management company will also deal with that stuff such as serving notices and legal fees.
Is the cost of a guaranteed rent scheme worth it, as is the machine as well piped as they make out. Or should I save a bit of money and just get a higher tier level of insurance cover which will cover arrears and the legal stuff.
I'm not in this to make living, I just want the mortgage covered tbh. The kicker is, I bought at the peak of interest rates
Good luck getting it back when you come home
This won't end well.
The rent guarantee schemes or insurance require you to be very active on the management of your property eg, inventory, inspections, et cetera et cetera obviously you can’t do that because you’re not around so you have to pay an agent to do that.
Get a good property management company, and use a third party like Alan Boswell Group for rent guarantee peace of mind. They charge ~£195 per tenancy, which I'm guessing would work out more cost-effective than using your agent: https://www.alanboswell.com/landlord-insurance/rent-guarantee/
Just make sure that the agent fulfils all the requirements for the scheme.
Appreciate this, I will definitely look into it. This could be the best of both worlds
Rent to rent is a scam and illegal if you have a mortgage. Likely you went get insurance either as for rent to rent you have to grant a sub lease. Also they tend to be for 3-5 years.
Insurance is possible for fully managed rentals but you have to pay the fees. If you want it back on an exact date it’s risky. The law is the law in getting possession so beware and fully informed.
Don't do it.
Any problems that arise can be solved by a phonecall to a tradesman.
This will be significantly less hassle than dealing with an agent who will be hard for you to contact and reply and/or them ringing you for the go ahead.
Just manage it yourself, you are unlikely to face any issues in 12 months.
Be careful on guaranteed rent schemes. They come with high cost and you really need to be careful who you are in business with. The guarantee is only as strong as the guarantor and most in the market have no pedigree or resources to stand behind a guarantee if things go wrong.
Better to let and get a property manager. I use LandlordLab.co.uk. Then find a good referenced tenant and get rent guarantee insurance. If you do it this way they’ll help you do all this for closer to 10%. You want someone who actually worried who is in your property and that they are looking after it. Too many cowboys offering the world but not really delivering
This.
We do what we say we will at the price we say we'll do it at and are backed by actual assets (office in UK, office abroad, computer equipment, currently 2 cars, etc), plus have a clear strategy. Many rent to rent companies don't have this and I've dealt with several calls over the last few weeks with differing versions of the same script, however a quick Google later and the companies are newly incorporated with directors having no business history.
We contract for independent agencies, but I treat landlords properties as I treat my own when it comes to how we treat tenants.
Just so you know, the website linked doesn't work and just comes to a domain for sale.
Thanks for heads up - I remembered it wrong and updated!
The blunt truth is that there is no way you can let your house for 12 months and guarantee you will get it back at the end of that time. Rent guarantee schemes can work - I have had a property on one for several years but I don’t have a particular end date in mind and I know it might take time to get the tenants out should I wish to do so. Most tenants want to stay in a property until they want to leave, few (aside perhaps from students) would take a tenancy knowing they will be kicked out in a year and for this reason I think you will find it difficult to get an agent to take it on on that basis. Even if you do find someone you cannot be sure they will move out after the year is up, you may have to evict them through the courts and this can take many months.
Thanks for the honest views.
I agree, which is why the guaranteed rent schemes appeal to me, it's peace of mind that my mortgage will still be covered, even if I have to find alternative accommodation for myself