Are rent guarantee schemes worth it?
This reduces the risk of you trying to rent out the property yourself, often with a financial discount. The tenants who inhabit the property have no direct relationship with the landlord, and everything is done by the middle tenant. Such contracts can be good if the parties trust each other and the figures can be easily agreed upon. Such a transaction is similar to leaseback agreements, which are more commonly used by property developers.
If purchased at the right price, such contracts can also increase profit margins.
How do rental guarantees work?
Rental guarantee insurance can be expensive and cost 5 to 7% of the annual rent payments that come with a policy. Like any other similar system, rental guarantees have their advantages and disadvantages that make them suitable for some landlords and unsuitable for others. Rental guarantee plans may be available as rental guarantee insurance for both residential and commercial landlords in your area. In return for an insurance premium, a landlord receives a rental guarantee — namely that the insurance company will provide the lessor with the lost monthly rent payments for a set period of time, as stipulated in the insurance contract.
Steady is supported by a Fortune 100 insurance company and offers landlords access to rental guarantee insurance for their rental properties.