Rent guarantee insurance is a risk management strategy that shields property owners from financial loss if a tenant fails or cannot pay their rent. This scheme means that if the renter stops making payments, there’s a provision for rental income for the landlord for a predetermined period.
Also, the highest rental yield is realised if the yearly rental revenue is as high as possible. If, at any instance, the property receives low rent or is vacant for an extended period, there may be a decrease in the rental value.
Here, we discuss how to increase the value of your property through a rent guarantee.
5 Ways to Increase the Value of Your Property Through Rent Guarantee
- Choose a Reputable Rent Guarantee Provider
The first thing you want to do is to choose a reliable and professional rent guarantee provider. A professional property manager or rent guarantee provider can offer a valid agreement, thereby ensuring your peace of mind. So, look online and have a list of about four or five different providers. Be sure to pay attention to their track records, customer reviews (positive and negative), and of course, if they cover your area. Additionally, an experienced rent guarantee provider will make both you and the tenants feel comfortable. This could be a very good sign that your property is in great hands!
- Higher Likelihood of Lease Renewal
Rent caps encourage tenants to stay long-term to avoid higher prices. This benefits landlords by eliminating yearly vacancies and turnover costs, leading to significant savings.
- A Rent Guarantee Scheme Improves Your Property’s Investment Appeal
Properties featuring a Rent Guarantee scheme hold greater appeal for potential buyers and investors in the real estate market. This scheme provides landlords with a dependable and predictable income stream, reducing perceived investment risks. Consequently, buyers are more likely to view your property as a solid investment opportunity, given the reduced financial uncertainties associated with the Rent Guarantee.
Your property’s increased appeal can offer a competitive edge, leading to higher demand and potentially more lucrative offers from potential buyers or investors. Consequently, the property’s value appreciates, resulting in a better return on your investment.
- Focus on Niche Markets
A thorough analysis of the local leasing market may identify specialised groups of tenants who are willing to pay more for the amenities they require or desire.
Pet owners are one of the specialist groups that may be accommodated the easiest. The majority of dog and cat owners will gladly pay a higher rent in exchange for the ability to bring their pets. Naturally, some landlords think pets can hurt the property and cost more in maintenance and upkeep than they would earn in extra money. Also, adding a “granny annex” could be advantageous in some places where renters are ready to pay more for multi-generational living. It might also be profitable to sell to corporations. Corporate renters require the best-equipped premises so that prices can be higher, but the rentals are quite high and may be collected up to a year in advance.
Are Rent Guarantee Schemes Worth It?
The simple answer to this question is YES, they are! Choosing a professional rent guarantee scheme can ease your hassles as a property owner. For one, you don’t have to worry about chasing tenants for rent arrears or unpaid rent.
Property Rent Guarantee boasts of an excellent understanding of the rental industry and has no problem getting quality tenants to your properties. With precise and simple contracts, our team gets you on board fast so that you can start earning. Contact us today to get started!
