What is Guaranteed Rent?
Our Guaranteed Rent service is where we lease a property from a landlord, usually for a minimum of three years. Central Properties become the landlord's lead tenant and agree to pay a fixed rent each month.
Central Properties then carry out improvement works to bring the property in line with market demands and expectations. This will usually include substantial refurbishment work which, if changing the layout, would always be agreed with the landlord in advance.
We would then sublet and manage the property for the remainder of the agreed term, paying the landlord rent each month regardless of whether we find tenants for the property or not.
What is the benefit to landlords of this service, surely they could find tenants themselves?
In recent years we've seen a huge increase in tenant expectations and demands, mainly driven by the rise in quality of the Purpose Built Student Accommodation (PBSA) and Build-to-Rent (BTR) sectors. To remain relevant in an increasingly competitive marketplace properties must be refurbished to a high standard otherwise, given the amount of choice tenants have, they will sit empty.
As a market facing agent we are well positioned to identify and adapt to changing tenant tastes quicker than some private landlords.
Our Rent Guarantee service is the perfect option for landlords who are:
- Struggling to attract good quality tenants
- Have noticed an increase in the number void periods between tenancies
- Have properties in need of refurbishment but don't have the funds or expertise to manage such work
- Fed up of managing the property but not in a position to sell
The benefits to landlords of using our Guaranteed Rent service are:
Security of income
Central Properties pay the landlord rent regardless of whether we find tenants to move in. This gives landlords the security of knowing the rent will be paid long-term by an experienced and reputable tenant, us.
A free refurbishment
Central Properties will undertake the necessary work to bring the property in line with market standards. These works are paid for by us. When the property is returned to the landlord at the end of the lease, we will be handing back a much higher standard of property.
Increased property value
With student numbers forecasted to rise 10% by 2023, and space for new development being limited in and around University campuses, it is expected the rental demand for high quality well positioned student HMO stock across major university towns is likely to increase. As more investors discover the favorable returns offered via student buy-to-lets, and with the volatile nature of alternative asset classes, we predict a rise in asset values for high quality student property stock. Landlords on our Guaranteed Rent option will retain control of the property at the peak of student property investor appetite, placing them in a strong position to sell their property at record high levels.
To find out more about our Guaranteed Rent package, or to have a chat with one of our property experts, please contact our friendly and knowledgeable team on 0113 278 1188. Alternatively, click here to complete a short form and we will be in touch to discuss your needs shortly.