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Are rent guarantee schemes worth it?

Posted by jcbrosse2 on December 22, 2021

Doorstead claims to be less risky than alternatives, but when the startup works this well, it’s only a matter of time before established companies try to jump in. As part of a rental letting system, landlords rent their property to an individual, a company, or a landlord who becomes a “tenant” for a certain period of time in exchange for a guaranteed monthly income. The startup claims to earn users 3% to 9% more than other property management models. The exact scale of the discrepancy is hard to tell, but with compliance, real estate marketing, and maintenance costs potentially reaching thousands of pounds, along with the ongoing costs that arise during idle times, the margin must be large enough to cover fees and make a profit.

What is a guaranteed rental fee?

The idea of a stress-free rental experience and guaranteed income is extremely attractive – especially in such uncertain times. One potential disadvantage is that by selling the lease right to a third party, the homeowner loses control over how that property is managed during the term. However, this can also be negotiated and agreed upon in the contract. Under a guaranteed rental system, also known as a rental rental system, a landlord hands over their rental property to a company, institution, landlord, or individual for a specified period of time in order to receive a guaranteed monthly income (whether the property is occupied or not, or whether the property is occupied or not the tenants are behind). The main idea behind these systems is that a landlord who wants to reduce risk and responsibility will rent to a broker at a fixed market value for a set period of time.


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