What is a guaranteed rent fee?
For this reason, those who feel the most pressured, combined with more competitive standards for HMO accommodation, find the idea of a stress-free guaranteed income an attractive option. The percentage that is applied is usually an industry standard (7% per dollar) and isn’t negotiated much. The cash flow from rental properties is the only revenue a landlord can count on to make their business profitable. Adjusting the guaranteed annual rent cannot in any case lead to a reduction in the current amount of the guaranteed minimum annual rent.
They then calculate the rent they want to receive and guarantee the landlord a fixed (lower) amount each month, regardless of whether the tenant pays or not.
