Guaranteed Rent Agreement
When choosing a guaranteed rent provider its key that you have an official contract or written agreement in place. This is important in order to ensure that there is a legal contract between the two parties. You the landlord and the third party.
The agreement need not be reems of paper but needs to ensure it clarifies the key points:
Term – when the agreement starts and finishes
Price – the rental price and frequency of payment: monthly, quarterly, yearls.
Landlord Responsibilities – what you as the landlord is responsible. Typically this will cover structural, electrical and boiler issues that arise.
Agents Responsibilities – what the guarantee rent provider is responsible for managing. This includes payment of rent, maintenance and compliance.
Termination – under what conditions the agreement can be terminated prior to the agreed term. For example if either party falls in bankruptcy.
It is key that you read through the agreement and ensure you are comfortable with all the clauses and terms as this will be the agreement that will be used in case of any unforseen issues arise between you and the service provider.
A guaranteed rent agreement is just one of the key steps you need to take when placing your property into a guranteed rent scheme. However, prior to this we recommend you complete a thorough check before choosing an agent. We have a complete guaranteed rent guide that breaks down what guaranteed rent is, pros and cons and includes the key due diligence checks you need to take.