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Debunking the Myths: The Truth About Guaranteed Rent Companies in London

Writer's picture: Adam GreenAdam Green
Guaranteed Rent Apex Housing Solutions

Our Head of Lettings, Adam Green, gives his thoughts on the unfair negative spin some London letting agents give on Guaranteed Rent companies in London.


During a recent research project, I came across an article from a prominent estate and lettings agency which gave landlords a rundown of why Guaranteed Rent Schemes are “too good to be true” and how landlords “shouldn’t be fooled” by the benefits offered by such schemes.


Having worked for over a decade with well established lettings agencies in London, I wanted to take the chance to respond to some of these myths that were used to direct business away from good rent-to-rent companies like Apex and back to high street agencies.


Myth: You will receive a lower rental income

Truth: On the contrary, well-established rent-to-rent Guarantee Rent companies like Apex Housing Solutions offer our landlords the full market rate. Not only do we do this, but we don’t charge any fees, so in truth, the return on your investment property is higher. For example, if your property rental value is £1,500 per month, a traditional lettings agency will charge you anything up to 17%+vat for the privilege of “managing” your property. Your take home at the end of each month is £1,194. Apex on the other hand will rent the property directly from you, sending the full £1,500 direct to your account. That’s potentially £306 more than with a high street agent!


Myth: You lose control of your property

Truth: You remain the landlord. A company like Apex will assist you with the day-to-day management of the property for free (the same service you would usually pay around 17%+vat for from a high street agent).


Not only will a good London based Rent Guarantee company like Apex Housing Solutions complete inspections, cover the cost of tenant damage and ensure the legal compliance is up to date (our Compliance Plus service also takes any headache away from you having to worry about this). It’s in our interest to ensure the property is looked after; we won’t get paid by our occupants if the property is kept in disrepair. We are still required to ensure all properties meet the necessary compliance and we would never breach maximum number of occupants. We also need to ensure minimum standards are met, just like you would have with any high street letting agency.


Guarantee your Rent in London

Myth: Rent Guarantee companies have no experience

Truth: Everyone at Apex has a vast amount of experience running UK Lettings teams and operations. Our CEO was a Director of a well-established London agency, our CCO has 25 years experience overseeing a massive portfolio of properties (at one point over 6,000!). Everyone in our team has or is working towards their relevant industry qualifications. We know our stuff.


Myth: A local agent has your best interests at heart whereas a Guaranteed Rent company does not

Truth: Take a moment to think about those higher initial setup fees that your lettings agent charges you - the ones that you only pay for a new tenant? Most letting agents want those fees, not the lower renewal costs you may or may not pay. Why would they spend time and effort for a low fee when they can earn more from an initial term?


This is the mindset of many letting agents (I caveat this statement by saying not all letting agents have this thought process, there are some great agents out there). On the other hand, when a good Rent Guarantee company like Apex agrees to pay the landlord a fixed rent for the next three to five years, it has not only your interest as a landlord at the forefront of its mind, but its own. We must keep a property in good condition in order to receive the best rates from our end users, otherwise we would be making a loss. That’s bad business. It makes no sense for us to think like this.


Myth: Rent-to-Rent and Rent Guarantee is unregulated and therefore untrustworthy

Truth. Anyone can set-up an estate agency. Only recently has it become compulsory for agents to become members of a property redress scheme. It was entirely unregulated. Whilst this is still true for a Rent Guarantee company, a reputable outfit like Apex Housing Solutions will be members of governing bodies or dispute resolution services. Apex, for example, is part of the Property Redress Scheme - a government-approved scheme designed to settle disputes between landlord, tenants and property-related businesses. Why would we choose to be regulated if we had something to hide?


Myth: Guaranteed Rent companies are not financially stable

Truth: While we cannot speak for other companies, Apex is backed by BGF - one of the UK and Northern Ireland’s largest private equity investment firms with a portfolio of over £3billion. Not only that, we receive our money from local councils - essentially, the government. How’s that for financial security?


Stress-free property management and guaranteed rent

Apex: Your Trusted Partner in Property Management and Guaranteed Rent

 

At Apex, we take the stress out of being a landlord. With our no-cost Guaranteed Rent Services, you can enjoy financial security while we handle all aspects of managing your property, from rental compliance to day-to-day management.

 

For more advice, support, or feedback, get in touch with us!

 

Call us on 0203 030 4241


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