What is Guaranteed Rent? How Does it Work?

Guaranteed rent is usually the result of a contract between the landlord and a third party, such as a rental agent or a property manager. The party providing the guaranteed rent agrees to pay the landlord a fixed amount over several years under this agreement. They essentially agree to pay rent for the facility; ownership is not transferred.

The Advantages of Guaranteed Rent 

It is worth noting that these contracts are not the same as the rental guarantee, which has a similar name. The following information can help you comprehend guaranteed rent for landlords.

Risk Reduction

Like other business owners, landlords seek to reduce their risk while increasing their earnings year after year. The main benefit of guaranteed rent is that you are working with a well-known company with a good reputation, rather than a random collection of tenants whom you have never met before and who may or may not choose to pay you a month-to-month rent. Property owner in Croydon? Continue reading to learn how a rent guarantee may make a difference in your life.


Due to the form of the agreement, guaranteed rent agreements are pretty customizable. You might want to ask the person renting your property to take care of everything from finding tenants to keeping it in good repair. They could prefer to find tenants and assign some of the maintenance duties to you. You will be able to jointly hash out the agreement’s contents because it is a contract between you and another individual.


You will have to find tenants, deal with tenant complaints, and execute maintenance and repairs. The more money and effort you plan to put into your property management obligations, the less guaranteed rent you will be able to offer. You will be able to find renters who will pay you more than the total of your work, the estimated repair charges, and the cost of assured rent from there. 


In other words, the deal you’re making is as old as time: you are offering to take on a piece of the landlord’s loan in exchange for a share of the profit. Everyone is happy because you make money, your landlord makes money, and you both make money.

Agent for Lettings

Suppose you decide to look into guaranteed rent. You should engage with trustworthy property management and leasing agents who have a history of offering guaranteed rent to other landlords. Fortunately, the website on which you are currently reading this has the same functionality. You can read reviews made by rental brokers and property management firms in your area who are interested in delivering guaranteed rent. Customers from all around the world can use the services of some internet letting agents.


It is impossible to say whether or not guaranteed rent will be beneficial to you; you will have to do your own research. If you decide to enter into a guaranteed rent agreement, shop around, find a rental agent you can trust, and make a bargain you can stand behind.