Guaranteed Rent Scheme
Langhams will GUARANTEE the rent on your property regardless of whether a sub-tenant pays us or not, we will pay the agreed guaranteed rent to you.
As the landlord, you will not need to take any additional cover to protect yourself for rent arrears as this is all covered by Langhams, therefore saving you time, money and giving you peace of mind.
Should there be any legal proceedings such as tenant disputes and tenant’s evictions, Langhams will meet all legal expenses and all court costs.
With our Guaranteed Rent service, we will provide the following:
- Advertise your property and find suitable sub-tenant(s)
- Where necessary, obtain references and carry out credit checks as appropriate on any sub-tenant(s).
- Drawing up relevant tenancy agreements including negotiated clauses
- Arranging, if necessary an independent Inventory, Gas Safety Certificate and Energy Performance Certificate.
- Check In sub-tenant(s) into the property and agree the inventory
- Manage all day to day tenant queries and issues for the property
- Transfer all utility bills including council tax liability into sub-tenant(s) name from the start of the tenancy.
Features of the scheme
- Rent paid even if your property is empty
- Rent paid even if the sub-tenant fails to pay
- Rental payments, paid on time every-time to the landlord
- Regular property inspections to ensure the property is being maintained as expected
- Property returned to landlord in same condition as initially presented, subject to fair wear and tear allowances
- Annual Maintenance allowance of up to £100 included
- Hassle free service for the landlord
Benefits of the scheme
- No void periods
- No arrears
- No late payments
- No problem tenants
- Full management service
- Guaranteed contract start date
- First £100 of annual maintenance covered
- No setup fees
- No letting agency fees
- Improved cash-flow
- No eviction costs
- No stress, hence total peace of mind
How does it work?
Langhams takes a lease over your property for a period of between 1 and 5 years and then we sub-let the property on an AST (Assured Shorthold Tenancy).
Guaranteed Rent scheme comparison with typical management service (annual)
|Details||Management Service||Guaranteed Rent Scheme|
|Rent per calendar month||£950||£800|
|Typical voids over 12 months (e.g. loss of 2 weeks rent during vacant periods when tenants move in/out)||£475||£0|
|Annual Management Commission (10%+VAT) *||£1,311||£0|
|Net annual income||£9,434||£9,600|
|Net monthly income (Average over 12 months)||£786.16||£800|
*Management commission calculated over 11.5 months, the sum of annual rent minus a typical void period (approx. 2 weeks)
**Langhams will contribute towards the first £100 of maintenance works should the need arise.
Guaranteed Rent Scheme Requirements
There are minimum safety requirements for any property to be considered for inclusion within the scheme.
- NICEIC/NAPIT Electrical certificate
- Gas safety certificate produced by a registered Gas-Safe engineer
- Fire door to kitchen fitted with a door closer
- Restrictors to all windows on the 1st floor and above
- Hardwired carbon monoxide detector
- Hardwired smoke alarms in communal areas
- Smoke alarms to all floors
- Vanity release locks to all bathroom
- Quick release locks to front and back entrance doors
- Sealed lights to kitchen and bathrooms
Langhams can produce quotes and arrange for any works to be undertaken and for any required certificates to be produced.
We strongly advise that you wait until a sub tenant has been assigned before furnishing the property as some tenants will have their own furniture. All furniture provided must be clean, working and in good condition. All properties must be well decorated and clean. All soft furnishings, such as mattresses must be clearly labelled and conform to the Furniture and Furnishings Fire Safety Regulations 1993 (as may be amended).
- Cooker - Freestanding cookers must have a safety chain attached that is appropriate to the current Gas Safety legislation
- Fridge freezer (appropriate size for premises)
- Appropriate number of storage units in kitchen
- Dining table with appropriate number of chairs
- 2 or 3-piece suite (dependent on size of property)
- Beds in all bedrooms (sizes applicable to size of rooms). For health & hygiene purposes new mattresses must be provided for all new tenants.
- Wardrobes and chest of drawers in all bedrooms
- All bathrooms & cloakrooms must have working vanity locks fitted
- Sealed/waterproof light fittings for all bathrooms
- Shower curtain or splash guard (if applicable). For health & hygiene purposes new shower curtains must be provided for new tenants.
- Nets/blinds and heavy curtains for all windows
- Appropriate flooring to all floors
- Lightbulbs & light shades
- Working doorbell/adequate door knock
- TV aerial
Any other items provided are at the Landlord’s discretion and LANGHAMS cannot be held liable for. Overall the scheme provides landlords with peace of mind, certainty and a hassle-free service.