Who Can Benefit from Rent to Rent Scheme? Can Guaranteed Rent Scheme Be Suitable for Foreign Investors?
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The guaranteed rent scheme is a program in which a landlord receives a guaranteed rental income from their property, typically through a housing association or local authority, for a fixed period of time.
This program is often used by landlords who do not want to take on the risk of managing their property or who are unable to find tenants.
The guaranteed rent scheme can be beneficial for several groups of people:
1. Landlords who want a steady income
The guaranteed rent scheme provides landlords with a fixed income, which can help to cover mortgage payments or other expenses.
This program can be especially appealing to landlords who do not want to take on the risk of managing their property or who are unable to find tenants.
2. Housing associations and local authorities
The guaranteed rent scheme can be a way for housing associations and local authorities to provide affordable housing to their tenants.
By offering a guaranteed rental income, they can incentivize landlords to rent out their properties to low-income tenants.
3. Tenants who need affordable housing
The guaranteed rent scheme can benefit tenants who are struggling to find affordable housing.
By partnering with housing associations or local authorities, landlords can provide their properties at a reduced rate, making it easier for tenants to find a place to live.
4. Property management companies
Property management companies can also benefit from the guaranteed rent scheme by taking on the responsibility of managing the property and collecting rent.
This can be an attractive option for landlords who do not want to deal with the day-to-day tasks of property management.
Overall, the guaranteed rent scheme can be a useful tool for landlords, housing associations, local authorities, tenants, and property management companies.
However, it is important to carefully review the terms and conditions of any program before participating to ensure that it is a good fit for your specific needs and circumstances.
For guaranteed rent North London contact City Borough Housing and receive free valuation. The professionals offer excellent services as the team is committed towards protecting their client’s property and income.
Can the rent to rent scheme work for foreign investors?
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Foreign investors can participate in the guaranteed rent scheme in a similar way to local investors.
For example, let’s say the investor purchases a two-bedroom apartment in London for £400,000. They enter into a guaranteed rent scheme with a local property management company for three years, with a fixed rental income of £1,500 per month.
The property management company then finds tenants for the property, who pay a monthly rent of £1,800.
The property management company deducts their fee for managing the property, and the investor receives the agreed rental income of £1,500 per month for the duration of the three-year agreement.
At the end of the three-year period, the investor can either renew the guaranteed rent scheme or choose to manage the property themselves or find a new property management company.
It’s worth noting that the terms and conditions of guaranteed rent schemes can vary depending on the property Management Company and location, so it’s important for investors to do their due diligence and carefully read the contract before entering into an agreement.
