News Article

A Guaranteed Rent Investment - Is Now A Good Time?

With the guaranteed rent scheme, the property owner and/or landlord would sign over their rental property to another agent (namely a company such as DABORACONWAY), for a specified period of time in exchange for a guaranteed monthly income. A huge benefit for the landlord, property owner, or property investor, as financial security is guaranteed in the contract.  

The Guaranteed Rent Scheme the DABORACONWAY offers is simply a great investment choice for landlords. We explain why investors should consider a guaranteed rent for their property portfolio. 

Olivia Pero, Manager of DABORACONWAY’s tell's the story further:  

Should I consider a guaranteed rent scheme 

In such uncertain times with Brexit looming large, interest rates rising and predicted to rise further, it’s hardly surprising that financial security surrounding your assets is at the forefront of your mind. Furthermore, the increasingly complicated tax situation is leaving many feeling financially restrained and vulnerable. It is at times of much uncertainty, such as these, that a Guaranteed Rent scheme can provide both security of income and stability. 

This year has seen a drastic rise in rents achieved on the scheme which in many cases are now competitive to those found in the private market, with the added bonus of being secured and incurring no management fees. The nature of the scheme is exactly as its name suggests, and is designed around offering full security of income via a local authority-backed lease agreement for one-five years, with most investors opting for a three-year term. The ability to offer a lease agreement is the result of an extensive tendered process which enables the genuine offer of a guaranteed rent, regardless of whether a property is occupied or not. Yes you read correctly, no void periods!

 The other benefits include no management or re-letting fees, so full management at no extra cost.  Unaffected by, yet considered against the recent introduction of draft laws to ban letting fees, this will only tighten the financial opportunities that can be found within the private market, making a Guaranteed Rent scheme even more attractive.

 As a company, DABORACONWAY offer the full umbrella of property related services and are not naive to the many mixed investment portfolios that investors may have. However, whilst we appreciate that the scheme may not be suited to all, there is most definitely lucrative opportunities to be found both within the West Essex area and beyond. 

To discuss the guaranteed rent scheme call us now: 0208 895678 on our head office Wanstead Branch, situated above the Estate Agent branch. Or contact us online. 

Posted on: 19 December 2017

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