Most landlords who come to us are choosing between two routes. One is guaranteed rent: a company rents the property for a fixed term and pays an agreed amount every month. The other is the traditional route: an agent finds a tenant and, if you choose full management, runs the tenancy for you while you receive the rent the tenant pays. Neither is right for everyone.
What guaranteed rent gives you
- The same payment every month for the full term, whether the home is occupied or not
- No void periods between tenants and no arrears to absorb
- Very little day to day involvement
- A single relationship with one company rather than with individual tenants
The trade off is that the monthly figure is usually set below the full open market rent, because the company is taking on the risk of empty periods, arrears and the cost of running the property.
What full management gives you
- The full market rent the tenant pays, less the management fee
- You keep the tenancy in your name and stay in control of decisions
- Professional handling of compliance, maintenance and the new legal processes
The trade off is exposure. If the property is empty for a month, or a tenant falls behind, your income drops.
A simple way to decide
Ask yourself which matters more over the next few years: the highest possible income, or knowing exactly what will arrive every month. Landlords with a mortgage and little buffer, owners abroad, and people who simply do not want the involvement often prefer certainty. Experienced landlords with reserves often prefer full management.
Many of our portfolio clients use both, choosing property by property. A property manager can look at your home and show you the figures for each route side by side before you commit to anything.
