ICO ZB892725Property Redress PRS051867
Is guaranteed rent worth it?
Is guaranteed rent worth it? It can be, for a landlord who would give up the top of the market for a fixed income and no day-to-day work. For some owners it is the wrong choice, and this page says which ones before you spend any time on a call.
The pros and the cons · When it is not worth it · How to check us
The pros and cons, side by side
Guaranteed rent trades the top of the market for certainty. Whether that trade suits you depends on what a bad year would cost you.
What you gain
- A fixed figure on the same date every month, for three to five years
- Paid in full during empty months
- No management, letting or re-let fees taken out
- Repairs, cleaning, inspections and compliance paperwork handled
- No calls from the household: all contact is ours
- A company on the lease, not an individual whose circumstances may change
What you give up
- The rent is fixed for the term, so a rising market passes you by
- You commit for three to five years, as a company let
- Selling during the term means selling with the agreement in place
- Your lender must consent to a company let, which can take time
- Mortgage, buildings insurance, freeholder costs and major works stay yours
- You are relying on one company to pay, so check who it is
When guaranteed rent is not worth it
We would rather you heard this from us now than discovered it two years into an agreement.
You plan to sell within three years
An agreement runs three to five years. If you expect to sell sooner, or want to keep the option of selling with vacant possession, a long lease works against you.
It lets instantly at a premium, and you enjoy running it
If the property lets within days, has never stood empty and you like managing it yourself, you already have most of what guaranteed rent offers. The fixed figure is worth most to owners who have had a void, a late payer or a costly year.
You may need the property back for yourself
If you or your family might move in during the next few years, choose an arrangement you can end sooner.
You want the upside of a rising market
A fixed figure stays fixed when rents climb. If you would rather have the ceiling than the floor, our management service pays you what the property earns, less a flat fee, and we will price both before you decide.
Is it a scam? What’s the catch?
A fair question. It gets asked because some arrangements sold as guaranteed rent are not what they seem.
The warning signs are familiar: an individual who sublets without the owner’s lender or insurer knowing, payments that stop after a few months, nobody you can look up.
Your agreement is with VividSpaces Ltd, and our company is named on the lease. The commitment to pay sits with a company for the full three to five year term, in writing, whether or not the property is occupied. It does not depend on any household paying us.
The real cost is the trade in the list above: you give up any rise in market rents during the term, and the freedom to end things quickly.
Check before you call
- Information Commissioner’s Office register: ZB892725
- Property Redress Scheme members register: PRS051867
- Ask to read the draft agreement before you sign anything.
- Ask your lender about a company let before you commit.
The one figure we publish: 100% of rents paid on time, on the agreed date.
What about reviews?
There are no landlord reviews on this site yet. If you would like to hear from someone who has signed with us, ask on the call and we will put you in touch with a landlord we already work with.
Questions worth asking them: has the rent ever arrived late, how were repairs handled, and what happened when one family moved out and the next moved in.
Questions landlords ask before signing
Is guaranteed rent paid below market rent?
Some providers pay below market rent and take their margin from the difference. Ours is at or above open-market rent, never below. We earn from running the property well over a long term, not from a discount on your rent.
What if VividSpaces cannot find a family for the property?
You are still paid in full on the agreed date. Your rent does not depend on the property being occupied at any point in the term.
Can I end the agreement early?
Only on the terms written into the lease. We go through the notice provisions with you before you sign, so you know where you stand if your plans change.
Who pays for repairs?
Day-to-day repairs and maintenance are ours. Your mortgage, buildings insurance, ground rent and freeholder obligations stay with you, and you keep the final say on major works.
Will I get the property back in the same condition?
The property is photographed and recorded room by room before the agreement starts, and checked against that record at the end. We make good anything beyond fair wear and tear before handing it back.
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