Northwood - Guaranteed Rent

jools002

Hi all, I've just seen an ad on TV for Northwood. They say they guarantee rent and basically become your tenant. I've had a look on their website but they don't really explains how it works. Does anyone know? I don't understand how there can be anything in it for them. Are they just like a management company or something?

anselld

Looks too good to be true?....... guess what?

gld73

You don't get the same amount in rent as you would if you rented it out directly to someone yourself - e.g. if the going rate for renting your property was £800/month, you'd maybe get £600/month from Northwood - but it would be guaranteed, 12 months/year with no voids.

I think their branch in Swindon folded 3 or 4 years ago (maybe longer), when some of the big local employers felt the crunch and laid people off .... rents in the area dropped, but Northwood was locked into paying guaranteed rents to landlords, so took the financial hit rather than the landlords themselves, until they had to fold.

I know people who rent out property through Northwood and seem happy to get a bit less money but have less hassle. It will suit some people, but others would prefer to get the maximum income instead, even if there is a bit more risk.

Vectis

They do advertise heavily (on radio too) but they're not the only company that guarantee rent - most others will do so for a fixed time.

I'm guessing that the rent you receive from Northwood will be substantially less than you would get directly from a tenant.

theartfullodger

Ask them to confirm - in writing - that their 100% guarantee which clearly we all believe will be backed up by a personal guarantee by a director.

£5 to an agreed housing charity if they confirm (copy please..).

I wouldn;t trust them further than I could throw them & I've a bad back.

I can forsee the future: Newspaper headlines, embarrassing articles.....

jools002

Thanks for replies. I'm happy at the moment with my tenant paying directly to me and I manage the property myself, but just wondered what these guys were all about. I think I shall steer clear for now.

Guest101

You rent to them for approx 70% of the true rental value.

They move in tenants, any tenants, at 95% value.

They are all franchised, so each office is it's own company. My local one is not very good in my opinion. Don't look after the properties at all.

Guest101

jools002 wrote: »

Thanks for replies. I'm happy at the moment with my tenant paying directly to me and I manage the property myself, but just wondered what these guys were all about. I think I shall steer clear for now.

This isn't a management contract though, they are literally your tenants.

They do also manage properties, taking a monthly percentage

G_M

See: [FONT=&quot]New Landlords[/FONT][FONT=&quot] (information for new or prospective landlords)[/FONT]

Rent Guarantee Schemes
Some Housing Associations, councils, and private letting agencies offer schemes which guarantee your monthly rental income, removing the risk of costly voids between tenants. The advantage of these schemes is obviously the certainty of regular income to pay your mortgage etc. Against this you must weigh 1) the (significantly?) lower rent you will receive; 2) the removal of your freedom to select either the specific tenant or even the type of tenant; 3) the reality that the HA/agent etc will have little concern for the protection/condition of your property; 4) the reality that their priority will be to have a tenant (any tenant) in occupation. Additionally you should ensure that your landlords insurance/mortgage terms do not prohibit the type of tenant the HA/agent plans to install.

[FONT=&quot]Letting Agents [/FONT][FONT=&quot](Tips for selecting, and tips for sacking them)[/FONT]

Greco

well my experience with guaranteed rent is quite diferent. surprised to see so much negativity about it... I have 7 properties in N.London and all of them on guaranteed rent. First property given to them as a taster 5 years ago. Last year I gave them the last one. For me it works better then anything I tried before.

Yes I get around 25% Less (for me it works out at 22.6% haha) but I havent spent a penny extra and havent had a single call, for anything other then Hi J! how are you? My phone rings I see its them and It doesn't scare me like it used to. For me thats priceless.

Just my 2pence..

Pixie5740

Greco wrote: »

well my experience with guaranteed rent is quite diferent. surprised to see so much negativity about it... I have 7 properties in N.London and all of them on guaranteed rent. First property given to them as a taster 5 years ago. Last year I gave them the last one. For me it works better then anything I tried before.

Yes I get around 25% Less (for me it works out at 22.6% haha) but I havent spent a penny extra and havent had a single call, for anything other then Hi J! how are you? My phone rings I see its them and It doesn't scare me like it used to. For me thats priceless.

Just my 2pence..

That's interesting Greco, certainly interesting enough to dredge up a thread from January.

Have you ever gone to inspect your properties? What kind of condition are they in?