Company guaranteed rent set-up?

by Readers Question

13:23 PM, 20th May 2020
About 7 months ago

Company guaranteed rent set-up?

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Company guaranteed rent set-up?

I have been hoping to invest in property for a few years, but as friends of mine have struggled with bad tenants, I have been hesitant.

I have wondered whether investing in property, but using an estate agent that can guarantee my rental income would be worthwhile? I have found some estate agents advertising a ‘Company Guaranteed Rent Set-Up’, but I am struggling to research and read up on the law in regards to this kind of agreement.

My main concern is how would such an agreement alter my tenants rights and leverage to withhold rent ? I want to avoid a big legal mess and inevitable headache!

Dianne


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Comments

Neil Patterson

13:25 PM, 20th May 2020
About 7 months ago

Hi Dianne,

It is impossible to mitigate risk completely in any form of investment. However, Rent Guarantee Insurance can mitigate most of them, as can letting to institutions.

Chris Sheldon and his team at LettingSupermarket.com, will be able to provide you with further information.

Please see >> https://www.property118.com/letting-supermarket-full-management/68829/

Darlington Landlord

0:18 AM, 21st May 2020
About 7 months ago

Dianne
Only invest if you can do it for the long term and have checked out all the rules and regulations private landlords have to follow. Also your mortage interest is not claimable as an expense just a 20% allowance which may make a massiver difference depending on other income.
Laura

Charles de Lastic

9:27 AM, 21st May 2020
About 7 months ago

I own and run a portfolio of 19 properties and some serviced accommodation for more than 15 years. @Darlington Landlord is correct. The tax is now a big issue for many people. You need to get advice and get the calculations done in advance to check if you should buy any property as an individual or as a limited company. Talk to other landlords and get a good idea of what you need to do. Property investment is not a passive income it requires work to make the best of it. I also belive that in the next year we will see a significant drop in property values and so you may be better off waiting and do your homework in depth while you wait.

Dave Driver

11:15 AM, 21st May 2020
About 7 months ago

Perhaps this kind of property investment is not for you? Buy and hold in residential or commercial property always means having tenants in some way. You could look for a strategy that doesn't involve tenants, such as flips.


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