How do rent guarantees work?
They then pay you “slightly less than the market rental value.” Fortunately, Doorstead’s liability is manageable in the event of a recession or other crisis, as leases are not held for very long and home rentals tend to increase in an economic downturn. Although part of the lease’s appeal lies in the promise of generating rental income while relieving the landlord of their responsibilities, it’s not necessarily that easy. The agreement between the landlord and the tenant is commercial in nature, so they should lease the property for the period that the tenant will pay the guaranteed rent.
The PRS has created three guides for those who may be involved in guaranteed rent or rent of 2 rental agreements.