Why worry as a property owner when you can have all the headache of managing and maintaining your property done for you and still get paid whether your property is booked or not?
Of course! This is possible through the Rent Guarantee system. By offering a guaranteed monthly payment, you no longer have shortfalls in your income and the property manager or management takes on all the duties and obligations associated with being a landlord.
Rent guarantee refers to a contractual arrangement between a landlord and a third-party that ensures the landlord receives rental income regardless of whether the property is occupied or not, or if the tenant fails to pay.
“Landlording” is a great investment, but no doubt, it can be challenging. From finding quality guests to handling property maintenance, housekeeping, and rent collection, landlords often face several challenges in the rental market. However, one sure approach to mitigate these problems is by the use of Rent Guarantee schemes.
Rent Guarantee is a valuable asset for landlords, ensuring a hassle-free rental experience and financial security.
Below, we discuss the three common types of rent guarantee schemes:
The 3 types of Rent Guarantee
Guarantor Rent Guarantee:
In this type of rent guarantee, a guarantor, typically an individual, agrees to take responsibility for the tenant’s rental payments if they default. The guarantor undergoes a vetting process and signs an agreement with the landlord or a guarantor service provider.
If the tenant fails to pay rent, the guarantor becomes legally liable to cover the outstanding amount. This type of rent guarantee is often used when tenants have insufficient income or poor credit history.
Rent Guarantee Insurance:
Rent guarantee insurance is a policy purchased by the landlord from an insurance provider. It offers financial protection in case the tenant defaults on rental payments. If the tenant fails to pay rent, the insurance policy covers the lost income for a specified period, typically up to a certain limit. The insurance premium is usually paid by the landlord, and coverage can vary depending on the policy terms and conditions.
Government Rent Guarantee Schemes:
Some governments or local housing authorities may offer rent guarantee schemes to support landlords and provide assurance of rental income. These schemes often target specific groups, such as social housing or low-income tenants.
The local government acts as the rent guarantor, ensuring landlords receive the agreed rent even if the tenant defaults. The exact structure and availability of such schemes may vary depending on the jurisdiction.
Do You Desire a Stress-free Lifestyle?
…where you can be relieved of the numerous responsibilities of having to:
- Search for tenants and actively engage in advertising and marketing efforts.
- Maintain and ensure the upkeep of your property.
- Collect rent as specified in the tenancy agreement.
- Manage housekeeping tasks.
- Handle insurance matters.
- Take care of utility bill payments and legal expenses.
- Initiate eviction proceedings in case of rent defaults, covering eviction costs and court expenses
- Conduct regular inspections of the property…
…and need it all handled for you, while you still get paid every month, regardless of whether your property is occupied or not? Do you also desire to have the perfect peace-of-mind that comes with low-risk of rent-arrears and not having to deal with issues of tenancy? Then, you should trust us on that!
At Property Guarantee Group (PGG), we take the burdens of you and help you handle all of the above-mentioned, giving you the time and freedom to focus on other things that matter to you.
Need help? Feel free to reach out today!
