GUARANTEED RENT
FOR LONDON
LANDLORDS

Guaranteed rent , otherwise known as Rent to rent (R2R) is a letting scheme for landlords that includes tenant sourcing and property management services. Under a rent guarantee scheme for landlords, a third-party company pays rent in full every month in exchange for taking over property management duties.

This third-party company becomes responsible for leasing the property to appropriate tenants. Landlords receive full rent payments each month no matter whether the property is occupied or not.

You can learn more about what GRA is by reading some of our handy Guaranteed Rent Scheme FAQs.

Guaranteed rent works by outsourcing property management and tenant finding duties to a trusted third-party company. Also known as a rent to rent scheme, the basic premise is that the landlord takes on the company as their tenant, who then becomes responsible for sub-letting the property to a live-in occupant.

This type of letting scheme provides landlords stable monthly income even during periods when the property is vacant.

Rent guarantee letting agencies are companies that a landlord can let their property to in exchange for assured rent payments. The landlord takes on the agency as a tenant, whose staff then take over all property management and tenant finding duties.

There are many names for this type of company, but all provide a similar service, including:

• Rent guarantee companies.

• Rent guarantee estate agents.

• Rent to rent companies.

• Rent to rent letting agencies.

This type of leasing agreement can be worth it for many landlords as it removes the risk of void periods and ensures a consistent income no matter the state of the rental market.

Depending on the type of agreement, rent guarantee letting agents may take on wider responsibilities like property management, compliance management and tenant-related repairs to help landlords secure consistent and hassle-free income from their properties.

Landlords should consider factors like pricing, coverage limits, included services and the company’s public reputation when comparing providers.

The best rent to rent schemes provide consistent rent payments and general property management services at no extra cost. At Apex Housing Solutions, we offer upgrade options to cover compliance management, routine repairs, maintenance and property inspections to help landlords with growing portfolios maintain high standards with no extra hassle.

For further information, also take a look at some of our Landlord Advice and blog posts about Guaranteed Rent.

Apex Housing Solutions currently only provides services to landlords in London, but we may expand to other UK locations in the future.

By focusing on London landlords, we’re able to provide attentive tenant sourcing and property management services to each and every client. With backing from BGF, the UK’s most active private equity investment fund, we may explore expansions, but for now we’re focused on providing the best rent to rent services in London for local landlords.

No, our landlord guaranteed rent scheme does not create HMOs. Apex Housing Solutions works closely with local authorities to place a variety of occupants into our landlords’ properties, but we never place individuals from different households into the same home.

Yes, these types of leasing agreements usually include property management, though different companies provide different levels of service.

At Apex Housing Solutions, our base agreements cover a wide range of property management services at no cost, including:

• Day-to-day management.

• General maintenance management.

• Tenant relationship management.

• Tenant-related repairs.

Rent guarantee agreements usually last between 1-5 years, with 36 months being the most common contract length. As long-term protection against void periods and common property management issues are the main benefits of rent guarantee schemes, they’re best-viewed as long-term commitments, so it’s important to find a company that understands your needs.

We typically enter into 36 month tenancies with our landlords to ensure we can provide long-term protection against void periods through dependable and consistent rent payments.

If this doesn’t suit your needs, we’re happy to discuss any alternative that works best for you.

Rent guarantee schemes typically cost between 5%-7% of a property’s total annual rent, but this can vary depending on the company you choose to work with.

A typical rent guarantee company will take on your property at no charge, allowing you to collect 100% of the rent with no letting fees. However, as the landlord you’ll still have to cover maintenance and compliance costs.

At Apex, in addition to this typical type of agreement, we offer optional upgrade services for landlords. Our team will handle all major compliance tasks and most maintenance costs in exchange for a small deduction from the monthly rent of lower value than most traditional letting agent fees.

There are no expensive tenancy setup costs that come with traditional high street letting agents, and Apex will cover the cost of the day-to-day management. You will have peace of mind knowing that there will be no void period and that rent will be getting paid to you each month with no concern of rental arrears.

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See our Landlord Advice post for a more detailed answer.

We are backed by BGF, the UK’s most active private equity fund, with a £3bn balance sheet supporting businesses across sectors and growth stages.

We work closely will local authorities to place a variety of occupants. The majority of people we place in our properties are couples or families. We do not place individuals from different households in one home (we do not currently create HMOs).

UK lettings legislation requires that we supply any occupant with a valid:

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• Energy Performance Certificate

• Electrical Installations Condition Report

• if applicable a gas safety certificate (CP12)

For properties with communal access we also require a Fire Risk Assessment.​

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We would also need proof of ownership or your permission to rent your property.

Unlike most guaranteed rent companies (who pay zero on day one), Apex pays 25% of the initial balance upfront. The remaining 75% follows a month later. After that, full rent is paid monthly in arrears (e.g. rent paid 20 March covers 20 February to 19 March).

If the property is unfurnished we will require a few rent-free days at the start to cover furnishing costs.

With a GRA, we don’t pay a physical deposit. Instead, we cover end-of-tenancy dilapidations up to six weeks’ rent - 20% more than a standard cash deposit.

Read more about our deposit alternative here.

Not quite - we cover day-to-day management of the property, not all maintenance costs. We will cover all costs related to damage caused by an occupant we have placed in the property, however, the landlord is still expected to cover general maintenance costs associated with renting a property, in particular issues related to structural, wiring or utility supply. Apex will manage everything for the landlord though!