Rent is a great source of passive income, and since rent prices in the UK have been on a constant rise, owning a property in the UK can be pretty lucrative. The other advantages of being a landlord include tax exemption, stability, reduced utility bills, and more.
However, renting your property to a tenant has multiple downsides, including long vacancy periods, legal risks, damage to property, inconsistent and late payments, etc.
What if we let you know that you could have the best of both worlds? As far-fetched as it may sound, you can rent your property in the UK without spending a penny on its maintenance or worrying about inconsistent payments via guaranteed rent UK.
Continue reading to learn more about guaranteed rent in Birmingham, the ways, the perks of becoming a guaranteed rent landlord, and more.
Let the Council for Guaranteed Rent
The Council is composed of local government authorities or banks, aiming to bridge the gap between the Department of Social Service (DSS) tenants and landlords. DSS tenants are the people who seek housing benefits due to financial hardship because of unemployment, impairments, or their status as single parents.
Landlords are often reluctant to rent their property to DSS tenants due to their inability to pay rent regularly. It is here that the Council steps in. The Council offers guaranteed rent to the landlord in exchange for providing housing facilities to the DSS tenants.
Even though the Council takes responsibility for providing the landlords with the agreed-upon rent, many landlords prefer to avoid renting their properties to DSS tenants owing to their poor handling of the property.
However, a reliable, guaranteed rent company ensures you deal with a trusted council. These businesses serve as a gateway between the landlord and the council and provide the desired guaranteed rent for your space.
While the agencies provide the councils with a portfolio of high-quality rental properties for their tenants, they make sure to connect you with councils that will look after the upkeep of your property and pay you a handsome rental price.
There are several benefits of letting your property to the council through a reliable property investment and sourcing agency, including:
- Upkeep of your property: The Council will maintain your property properly for the duration of your term agreement, which could be anywhere between one and five years.
- Timely payment: Regardless of whether the tenant is paying the council directly, the council will pay your rent. Therefore, no matter what the financial standing of your DSS tenants is, you will receive timely payment.
- A constant source of income: Even if the Birmingham rental industry receives a blow, the council will have your back.
Guaranteed Rent in Birmingham
Birmingham is the biggest and most populous city in the United Kingdom aside from London and is affectionately referred to as Brum in the local slang.
In this sprawling region of the West Midlands, more than 1.1 million residents, including 65,000 students and a sizable ex-pat population. It’s also a major global trade, business, and industry hub.
Anyone moving to Birmingham for a job or schooling will find it easy to find a place to live. Furnished flats are the most popular amongst people as they make it easy to live in the city while travelling solo or with family.
Visitors travelling to Birmingham often expect top-notch living facilities like WiFi, room service, and housekeeping. As a landlord, you can opt for guaranteed rent in Birmingham and convert your property into a serviced apartment without indulging in the hassle of providing these services and incurring major maintenance expenditures.
Opting for the guaranteed rent scheme in Birmingham also helps you obtain a yearly rental revenue that is assured and paid on schedule each month. Since many agencies in Birmingham offer a guaranteed rent scheme, landlords have plenty of options.
Guaranteed Rent Scheme in Birmingham for Landlords
In a guaranteed rental scheme, commonly referred to as a rent-to-own plan, the landlord rents their property to a business, organisation, renting agent, or individual for a predetermined amount of time in exchange for a fixed monthly rent (irrespective of the property being unoccupied or tenants have to arrear).
The guaranteed rent scheme in Birmingham is picking up the pace for all the right reasons. Here are the top 5 benefits of guaranteed rent in Birmingham:
- Save on the high utility bills of Birmingham
Compared to most cities, Birmingham residents shell out a higher proportion of their income on utility costs. Once you give your property on guaranteed rent, the tenants bear the utility bills.
- Regular source of income
No matter in what locality of Birmingham your property is situated, in case of a pandemic and other similar situations arise, you might stop receiving rent. Guaranteed rent ensures you receive regular payments, irrespective of the situation.
- Elimination of fraudulent practices
All site visits and tenant interviews are conducted on your behalf by the agency’s brokers when you entrust a real estate company with managing the rental of your house.
- Proper upkeep of the property
All good firms have insurance coverage that covers damages. You can be sure that your property will be handed over to you in its original state once the tenants vacate.
- Hassle-free procedure
The guaranteed rent programme has been a creative way for Birmingham landowners to profit from their properties without being influenced by outside factors. Earning money was never this easy!
6. Continuous Money throughout the Term of the Agreement
In Birmingham, the property investors take stock of everything in your home to ensure that everything is as it should be and when you strike up the guaranteed rent agreement, it doesn’t matter if the property is lying vacant or not you receive payment every month for the duration of your agreement. This is legal, binding and upheld honestly.
The best property agents will provide these services to you for free to help you get that extra bang for your buck!
- Guaranteed Rent up to 10 years You pay – £0
- Maintenance Fees You pay – £0
- Management Expenses: You pay – £0
- Hygiene and Upkeep You pay – £0
- Tenant Hunt – You pay – £0
- Administrative Fees – You pay – £0
7. Late Rents are a Thing of the Past
When you opt for the guaranteed rent strategy of income generation, you’ll be paid on time every month. It doesn’t matter if your property is occupied by a tenant or not, your property agent will make good on your contract and pay you out automatically each and every month on a stipulated day agreed mutually by the two of you.
8. Trustworthy Property Management Teams
Investing in property turns profits as soon as 1 week, and with the right brokers to help you out you can start earning as soon as you invest in your first property.
It costs nothing to set up the guaranteed rent contract and there are no fees for tenant placements either. It’s a win-win situation for landlords. So if you are planning to invest in property and make money immediately without dealing with all the complications of being a new landowner, then guaranteed rent is definitely for you.
9. Zero Agency Fees
You don’t have to pay high brokerage fees to get your property rented out. It’s all included in the contract. Agencies whom you strike up the guaranteed rent agreement with will rent out the property as if it’s their own as their interests are mutually tied up to yours. So they’ve set up so many conveniences in place so that when you hand your home over, it’s going to be well cared for.
10. Reliable Middlemen
When you trust a property agency to handle the rent-outs on your home, all the site viewings and tenants are interviewed by the agency’s brokers on your behalf. Wave goodbye to time-consuming tenants’ bounced checks and mounds of paperwork. See ya later, paper!
Earn Great Guaranteed Rent with Pluxa Property
If you are looking for a reliable property sourcing agency to enrol in the guaranteed rent scheme in Birmingham, look no further. We at Pluxa Property offer the best facilities!
From maintaining your property to helping you cut down on advertising expenses, our guaranteed rent scheme provides you with an easy and stable source of income. Get in touch with us to unlock some of Birmingham’s greatest guaranteed rent deals.
What do I need to know before renting out a property?
It would be best if you were acquainted with the rules and regulations of renting a property, had all your legal documents in place, and obtained your landlord insurance.
What type of rental property generates the most rental income?
The size and location of the property are the two major factors in determining rental income. For instance, an entire apartment building will help you generate more rent than a separate house since there are several units to rent in the case of an apartment building.
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