Tenants and cash taken care of: landlords let go as agents fill the void

Guaranteed rent schemes mean investors are assured of their income and spared all the hassle, says Sue Hayward. But convenience can come at a price

The Independent on Sunday - 21 October 2007

Being a landlord can be hard work. You have to find tenants, collect rent and sort out repairs. And if a tenant does a moonlight flit or simply refuses to pay, it can be a costly and drawn- out process to recover what is due to you. As a result, many landlords are turning to guaranteed rent schemes.

With these, a letting agent will guarantee the landlord a specified rent for a set period – usually a year. It is up to the agents to find tenants and the profit lies in any money they make above what is owed to their client. Landlords can benefit because they know exactly how much they will earn and do not have to budget for any “void” periods – the time a property is left un-let. In addition, they do not have the hassle of finding and vetting new tenants, and the agents will sort out repairs – although they will charge for this service - full article