Property Investment-Guaranteed Rental Property in the UK

"UK property investors may buy either residential or commercial property to sell on at a profit or they may decide to go for buy to rent properties. This is where investors find a property that has been allowed to run down; the investor does a minimal amount of renovation to make the property rentable and then rents it out either to individuals or to businesses. Sometimes investors opt for what are referred to as guaranteed rental property in the UK and abroad. Many new investors opt for buy to rent properties, particularly if they have seen the success that some new investors have achieved in television programmes. The buy to rent market has become so popular that some developers and property management companies are now offering what is known as a guaranteed rental property in the UK. Investors may also buy this type of property abroad as the company they buy from will often be managing the property in the owner’s absence for an agreed period of time. Guaranteed rental property in the UK is especially popular with new investors who have mortgage repayments to meet. If an investor knows that a fixed sum will be coming to them every month for the agreed rental period then they can use this to offset their mortgage costs. Generally speaking guaranteed rental property in the UK is offered to investors through a property management company. The company will guarantee an agreed amount of rent for a period of time and they will also manage the property; find tenants and collect rent for the investor. This service can take a lot of the hassle of owning rental property off of the shoulders of someone wanting to invest in guaranteed rental property in the UK. However, this guarantee does not mean that the investment is risk free or that the property may not become a burden once the agreed guarantee period is over. Property management companies have to cover their own costs. Costs might be front end loaded in the price that the investor pays for the property; or they might come out of the rental income that the investor is getting. Many property management companies that deal in guaranteed rental property in the UK and elsewhere will collect the rent and take some of it out to cover their costs before passing the remainder on to the investor. If you decide not go for guaranteed rental property in the UK then you need to make sure that you are clear on what this is going to cost in terms of money and time over a longer period. Investors who put their money into the buy to rent market also need to take into consideration the fact that there may be times in the year when they do not have a tenant â€" this is especially the case if the investment is in a holiday property which may only be available for rent at certain times of the year. While most property management companies are up front with their investors there are also those companies who will use certain properties as a guaranteed rental property in the UK because they are difficult to sell. These properties might be in a rough location or miles away from certain amenities. Once the guaranteed rental period is over then the owner may have trouble renting the property out again. Some investors discover that their guaranteed rental property in the UK was never rented out in the first place but the company they were dealing with used the scheme to sell a previously unsaleable property. Most guaranteed rental property schemes in the UK and abroad operate quite well and are beneficial both to the property management company and the investor. As with all investments it pays to find out as much as you can about guaranteed rental property in the UK if you want to avoid losing money."--Wilbert is the author this article. For expert advice on property investment, specialist reports & case studies please visit

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