These guaranteed rental schemes can be great as long as the letting agency can continue to pay their rent. Being a property management company specialising in guaranteed rentals the biggest drawback of having a rental property is the void periods between tenants. The third party, effectively the landlord's tenant, pays a fixed monthly rent to the landlord for a defined period, usually guaranteeing a percentage of the achievable rental income. After having constant problems with my previous letting agent, I decided to switch to Northwood Northampton because of their guaranteed rent system.
Fortunately, as it does not hold leases for very long, and housing rents tend to rise in an economic downturn, Doorstead's liability is manageable in the event of a recession or other crisis. As consumers become accustomed to zero-friction services, that approach is branching out into larger and larger sectors, such as the billions paid for long-term rentals. However, BBB does not verify the accuracy of information provided by third parties, and does not guarantee the accuracy of any information in the Business Profiles. Their service is first class and their guaranteed rental scheme is perfect for landlords who want a risk-free approach.
If you are prepared to wait and are not reliant on the income from that property to pay the mortgage, then perhaps rent guarantee insurance is worth the peace of mind. No, because property managers do not guarantee you a market rate rent, nor do they have incentives lined up to find great tenants for your property. We have a 3 year contract with them and would recommend them to anyone thinking of renting a property. Firstly, landlords contact Doorstead and provide some basic information about the property they want to rent.