Guaranteed Rental Income Service - Anyone Used Th...

[sitesafe]

HI

Just wondered if anyone has used the guaranteed rent service through an agent either Northwood or any other.

Is there are catch?

What are the fees (or is it more cost effective to buy rent guarantee insurance instead)?

Anyone been caught out?

Anyone happy with the scheme?

Thank you

[G_M]

I've never used these but believe:

* you'll get way below market rent, in return for the 'guarantee'
* you'll lose all control over which tenants are accepted, and even which type of tenant - the agency will just want a tenant in there
* you'll have little control over property maintenance, or protection against damage - again, the agency just wants a tenant in paying rent. ANY tenant
* if your mortage lender or insurer has stipulations as to tenant catagories, you may have conflict (see above)
* But, yes, every month, you will (should) receive the agreed amount - no voids

I guess it suits some people, but not me.

[sitesafe]

Originally Posted by G_M

I've never used these but believe:

* you'll get way below market rent, in return for the 'guarantee'
* you'll lose all control over which tenants are accepted, and even which type of tenant - the agency will just want a tenant in there
* you'll have little control over property maintenance, or protection against damage - again, the agency just wants a tenant in paying rent. ANY tenant
* if your mortage lender or insurer has stipulations as to tenant catagories, you may have conflict (see above)
* But, yes, every month, you will (should) receive the agreed amount - no voids

I guess it suits some people, but not me.

Thank you GM. It kind of read too good to be true on the website. I suppose one is paying the price for not having to deal with the hassle. Don't the agents only accept people that have been checked out as tenants or are they willing to accept anyone and the checks are just if the landlord wants them?

[G_M]

Originally Posted by sitesafe

. Don't the agents only accept people that have been checked out as tenants or are they willing to accept anyone and the checks are just if the landlord wants them?

By signing up to the guarantee scheme, you are effectively saying:

"OK, you guys pay me £X per month, every month, tenant or no tenant - now here's my property"

They will clearly want to make a profit so
a) they'll want tenants in there every month if possible and
b) they'll want the rent to be £X + £Y

Tenant referencing? Maybe, but if their choice is to install an unvetted tenant, or a poor risk tenant, Vs leaving it empty, what do you think they'll do?

[theartfullodger]

Judging by how much North wood's franchises claim to make there must be a HUGE profit margin in there somewhere...

[theartfullodger]

See how much the owners make from these agencies & their "guaranteed rent" (aye, right..) schemes...

http://www.northwoodfranchises.co.uk...e/testimonials

Gordon Adamson opened his Northwood franchise in Carlisle in June 2007 having left a career as a National Sales Manager with BT. The one reason why Gordon chose Northwood was because it was different and stood out amongst all the other property-related franchises. Having been involved in Sales all of his life, Gordon realised the importance of having a unique product or a unique selling point and Northwood has just that with its brilliant Platinum Scheme.

In the first three years of trading, Gordon has banked in excess of £800,000 gross profit!

After just 12 months of trading their average monthly gross profit was in excess of £17,000! It's now over £30,000!

Nick Harris opened the Wokingham franchise with his wife Teresa in June 2004 with the aim of building a business together. Nick having formerly been in the marketing sector recognised the importance of a unique selling point and a strong brand.

In their first four years of trading they have generated a gross profit in excess of £800,000.

Graham Holden opened his Northwood franchise in Edinburgh in August 2003 and after seven years of trading he's generated a staggering income in excess of £3,000,000!

Graham attributes his success and current profit margins, which are in excess of 30%, to Northwood's unique Platinum Guaranteed Rental Income Scheme, which in his opinion sets Norhwood leagues ahead of its competitors. Graham's business is so successful that he is now semi-retired and only spends one or two days a month working.

Yes, I'm sure this is all entirely above board & all landlords get a fair deal from them, aye, right...

Cheers!