ICO ZB892725Property Redress PRS051867
Guaranteed rent vs letting agent
Guaranteed rent vs letting agent comes down to who carries the cost of a bad month. A high-street agent passes the rent on to you, rises included, and typically charges 10% to 15% of it plus VAT, with letting and re-let fees on top. Guaranteed rent pays you a fixed figure on the same date every month, empty or not, with nothing deducted.
No fees deducted · Paid in empty months · Three to five year agreements
What a year looks like under each
The arithmetic behind the table below, for a property that would let for the same amount either way.
With a letting agent
£16,210
received across the year
With guaranteed rent
£22,800
£1,900 on the same date, twelve times
The agent year assumes
- Open-market rent £1,900/month
- 10% management fee
- Two void months
- £550 re-let fee
- £340 repair bill
- One late payment
The agent year includes two empty months, a repair and a late payment. In a year with none of those, the agent route would leave you £20,520, because the fee still comes off every month. The fixed figure would still be £22,800. The example uses a 10% fee before VAT, the low end of what agents charge.
Illustrative figures, not a quote and not an offer. £1,900 a month is the level of a current Oxford agreement, not a promise for your property. Your figure is agreed in writing after we visit, and your agent’s real fees are in your contract.
Side by side
The agent column describes a typical high-street full-management service. Yours may differ, so read it against your own contract.
An agent is the better fit if you plan to sell soon, may move back in, or want rents that rise with the market. Our own management service sits in between: you keep the upside, for a flat fee.
Switching from your current letting agent
The order matters, mainly so you never give notice before you have a figure in writing.
- 01
Read your agent's contract
Find the notice period, any fee for ending early, and whether commission carries on for as long as a household the agent found stays in the property. These terms are set by your contract, not by law, so check yours rather than assume.
- 02
Get our figure in writing first
Ask us for a proposal before you give notice, so you are comparing a real number with what you receive now. It costs nothing and carries no obligation.
- 03
Tell us if the property is occupied
If someone is living there, the switch has to fit around their agreement and the law that governs it. Tell us the position and we will talk the timing through with you.
- 04
Speak to your lender and insurer
A company let needs your mortgage lender's consent, and your buildings insurer needs to know. This is usually the step that sets the timetable.
- 05
Collect the paperwork
Ask your agent for the gas safety certificate, electrical report, Energy Performance Certificate, inventory and any licence for the address, plus keys and meter readings.
- 06
Give notice, then hand over
Once terms are agreed, give notice in the way your contract requires. Agreements typically start 5 to 10 working days from agreed terms.
Unsure which duties stay yours once the agent has gone? The landlord guide to who does what sets them out one by one, and the guaranteed rent page lists everything the agreement includes.
Questions landlords ask when comparing
How much does a high-street letting agent charge?
Full management commonly costs 10% to 15% of the rent plus VAT, and more in parts of London. Many agents also charge letting, re-let or renewal fees. Your own agent's fees are set out in your contract, which is the figure to compare against.
Can I switch from my letting agent to guaranteed rent?
Yes. Check the notice period and exit terms in your agent's contract first, get our figure in writing, then give notice in the way the contract requires. We will work the start date around your position.
Will I earn less with guaranteed rent?
Our figure is at or above open-market rent with nothing deducted, so compare it with what actually reaches you now after fees, empty months and repairs, not with the headline rent. What you give up is any rise in market rents during the term, and the freedom to end things quickly.
Do I still have legal duties as the owner?
Yes, under either arrangement. Safety certificates, the EPC and licensing sit with the owner in law. With us, we keep the diary, arrange the checks and send you the paperwork, and we tell you plainly which duties remain yours.
I am a letting agent. Can I refer a property to you?
Yes. Agents with vacant or hard-to-let stock can route properties to us rather than manage them. There is a separate page for agents setting out how that works.
Find out what your property would earn
Tell us the address. We look at the property and come back with a fixed monthly figure and the term we can offer on it, in writing, at no cost.
Before you call
You will not find landlord reviews on this site. We would rather show you nothing than show you something we invented. Ask us on the call and we will put you on the phone with a landlord we already work with, so you can ask them instead.
VividSpaces Ltd · ICO ZB892725 · Property Redress PRS051867