Guaranteed rent vs a letting agent in East London: the honest comparison
East London landlords get more guaranteed rent offers than most. Some are good, some are not. Here is how to weigh one against a normal managed let.
The trade
A managed let earns the full market rent, minus a fee, and you carry the empty weeks, late payers and repairs. Guaranteed rent swaps some of that rent for a fixed monthly payment from a company let, which takes those risks on.
Five sums to do
- Twelve months of the guaranteed figure
- Twelve months of market rent, less fees and a realistic allowance for empty weeks
- Who pays for routine repairs, and who pays for major ones
- Licence fees and renewals: which side pays
- What happens to the rent if the market rises during the term
Licensing changes the maths
In Barking and Dagenham every rented home needs a licence, and Redbridge and Havering license many wards. A good guaranteed rent agreement says who applies, who pays and who meets the conditions. If it is silent, assume it is you.
Consents
A company let needs your mortgage lender’s agreement and, for most leasehold flats, the freeholder’s. Do not sign before you have both.
Check who you are dealing with
Look the company up at Companies House, ask how long it has traded, and speak to landlords it already pays. The promise is a contract, not insurance.
Try our rental income calculator with your own figures, or read how our guaranteed rent works.
