Franchise firm Northwood has launched a guide to help explain the variety of offerings that fall under the umbrella term of guaranteed rent.

In doing so, it explains its own offering – something on which Northwood has previously bordered on reticence.

The new guide also explains insurance products – over 100 of them are on the market but they vary considerably in what they offer and their costs – and rent-to-rent, where agents or individual tenants sub-let the property.

Although aimed at landlords, the guide is a handy primer for those agents considering how best to offer guaranteed rent.

Bailiff firm The Sheriffs Office recently reported that rent-to-rent is on the rise, with tenants finding themselves on the street after thinking they had rented rooms from legitimate landlords, and equally landlords who find that their tenant has sub-let their property, room by room, to people they have never laid eyes on, let alone checked for references. Northwood adds its own warning, calling this type of rent-to-rent illegal.

Northwood’s Guaranteed Rent vs Guaranteed Rent Guide looks at the four main offerings on the market, including its own.

Northwood managing director Eric Walker said: “We receive thousands of inquiries from landlords every year who are genuinely confused by the range of guaranteed rent services.

“Whilst the headline label for these services might be similar they are often incorrectly used interchangeably where in fact there are fundamental differences.

“The key difference between guaranteed rent and more traditional lettings services is that it is a contract between us and the landlord in which we effectively become the tenant.

“With our guaranteed rent scheme, we rent the property directly from the landlord, then pay the landlord a fixed rent every month, regardless of if the property is let and regardless of if the tenant doesn’t pay.

“We always make sure that the property is let to a tenant suitable for the type of property and that there are no structural changes made to create additional bedrooms.

“One of the key features, and perhaps the most reassuring for landlords, is that the correct, legally compliant tenancy agreement is used, ensuring that the landlord is never placed in a vulnerable position.

“Offering guaranteed rent is not as easy as people think, and a lot of the companies offering a guaranteed rent service are taking on far too much risk and growing too quickly without the financial resources to support their commitments.

“We are extremely selective about the properties and tenants we take on, as it is not in our interests to accept tenants who pose a risk.

“The key to our success has been gradual, organic growth over nearly 20 years, avoiding taking on too much risk and ensuring that our landlords are protected.”

http://blog.northwooduk.com/