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0113 519 1369 info@amalida.com

You ask, we answer

There is a lot of misinformation about guaranteed rent services. We have compiled here the most frequently asked questions that we have had over the years.

HOW DOES OUR GUARANTEED RENT SERVICE WORK?

The Guaranteed Rent service offered by Amalida Properties is a way to make life easier for property owners. Here’s how it works in simple terms:

  1. Agreement:

    You -the property owner- enter into a property management agreement with us. This agreement outlines the terms of our service, including the duration, which is typically for a fixed term of 6 years.

  2. Rent Payment:

    Once the agreement is in place, Amalida Properties pays you the agreed monthly rent for your property. This amount is paid to you every month, regardless of whether the property is occupied or not.

  3. Management:

    Amalida Properties takes over the management of your property. This includes finding tenants, collecting rent from them, and dealing with any issues that arise. We handle all aspects of property management, from maintenance and repairs (excluding structural issues, which remain the owner’s responsibility) to complying with legal requirements like safety certificates, HMO regulations and tenant deposits.

  4. Maintenance and Repairs:

    We maintain your property in good condition, ensuring it stays in the same state as it was at the beginning of our agreement, as detailed in the Schedule of Condition attached to our agreement. We cover the costs of most types of repairs and maintenance, except for certain responsibilities that remain yours, such as the structure, exterior, and any pre-agreement conditions

Our Guaranteed Rent service offers you a hassle-free way to earn income from your property. You get a fixed monthly payment without dealing with the day-to-day responsibilities of being a landlord, while we ensure your property is well-managed and maintained.

WHAT ARE THE BENEFITS TO THE LANDLORD OF OUR GUARANTEED RENT SERVICES?

Our Guaranteed Rent services offered numerous benefits to landlords and these benefits are based on our management agreement:

  1. Steady Income:

    Landlords receive a fixed and predictable and guaranteed monthly income for their property, whether the property is occupied or not.

  2. No Letting Fees:

    Landlords save on the costs typically associated with finding tenants, advertising and many other various fees that most letting agents charge to the landlords.

  3. Zero Commission:

    Our Guaranteed Rent service means landlords don’t pay commission fees that are often charged by traditional letting contracts for rent collection and usual property management.

  4. Property Maintenance:

    Amalida Properties handles and cover the cost of the maintenance and repair of the property, excluding structural issues, which remain the owner’s responsibility. This is also a saving for landlords we work with

  5. Compliance and Legalities:

    We ensure the property complies with all relevant housing regulations, including safety certificates and deposit protection, reducing the legal risks for landlords. As part of the National Residential Landlords Association and Leeds Rental Standard, we keep informed and comply with all legal requirements and keep up with any legal changes.

  6. Hassle-Free Management:

    From tenant screenings to rent collection and handling emergency repairs, we manage all aspects of the property, from A to Z, allowing landlords to enjoy their earnings without the day-to-day worries of property management.

  7. Long-Term Agreement:

    Our service is based on a fixed-term agreement, usually 6 years, offering long-term security and peace of mind for landlords.

  8. Professional Services:

    We work with other reliable and qualified third parties to ensure high-quality maintenance and repairs, all covered under the Guaranteed Rent service.

  9. Tenant Management:

    We conduct regular property visits to ensure tenants comply with the terms of their tenancy agreements and promptly addressing any issues.

These benefits are designed to offer landlords a comprehensive, worry-free property management solution, ensuring their property is professionally managed while they enjoy a consistent, predictable and guaranteed rental income.

IS THE GUARANTEED RENT SERVICE YOU OFFER AN INSURANCE?

The guaranteed rent service that we offer is not insurance product. It is a property management service where we pay you a rental income no matter what, for as long as you work with us. We also cover most maintenance and repairs and the day-to-day of the property and tenant management. We offer so much more than a typical insurance product.

WHAT IS THE DIFFERENCE BETWEEN THE GUARANTEED RENT SERVICE THAT YOU OFFER AND RENT GUARANTEE INSURANCE?

This is a question landlords ask often.  This comparison table will hopefully clarify the differences between Amalida Properties’ Guaranteed Rent services and a typical rent insurance product:

Feature Guaranteed Rent Service by Amalida Properties Typical Rent Insurance
Payment Guarantee Fixed monthly rent paid directly to landlords, regardless of occupancy. Compensation only if tenants fail to pay rent, subject to claims process.
Property Management Comprehensive management including tenant finding, maintenance, and legal compliance. No property management services included.
Maintenance and Repairs Included in the service and paid by us, therefore, reducing unexpected costs for landlords. Not covered; landlords are responsible for the cost of all maintenance and repairs.
Costs and Fees No additional fees for finding tenants or management services. Monthly premiums paid by landlords, plus possible deductibles in case of a claim.
Income Stability Long-term agreement provides stable and predictable rental income. Only provides temporary financial relief during tenant default.
Hassle-Free Experience Full management of the property, offering landlords peace of mind. Landlords still manage property and deal with tenant issues.
Claims Process No need for claims; regular payments are made automatically on the 1st of each month. Claims process can be time-consuming and subject to approval.
Long-Term Security Fixed-term agreements, usually for 6 years, offering long-term security. Annual policy renewals required, with terms possibly changing.

 

The Guaranteed Rent service by Amalida Properties offers a comprehensive, hassle-free solution for landlords, ensuring stable rental income, full property management, and peace of mind without the uncertainties and responsibilities typically associated with being a landlord or the limitations of rent insurance products.

To read more about the differences between guaranteed rent and rent guarantee insurance click here.

WHAT IS THE RENT THAT YOU PAY TO THE LANDLORD WITH YOUR GUARANTEED RENT SERVICE?

We get this question always at some point on the conversation with the landlords. Of course, this is an important point.

The answer is not straight forward because that we offer to the landlords as a guaranteed rent varies. It depends on the number of rooms, the state of the house, the location, etc.
However, as a general rule, our fee offered to the landlord is at least, and in most cases higher than, the NET rent they achieve today.

Click here to see our full blog.

You can also book a free consultation call today, to discuss your properties potential here.

WHEN DO I GET MY GUARANTEED RENT PAID?

Payments are done by standing order on a monthly basis (in arrears) and on the 1st of each month.

ARE THERE ANY DEDUCTIONS ON THE RENT PAID?

For our guaranteed rent customers, the rent the landlord receives is guaranteed as agreed by the management contract. There are no deductions or fees. Unless there is structural damage.

For our lettings customers, there will be a monthly commission of 10% of the rent for family homes, 12% monthly commision for HMO’s and 8% of the annual rent for tenant find and set up for both. Additionally, any maintenance and repairs will be charged as per the trade invoice.

DO YOU PAY THE RENT IF THE PROPERTY IS EMPTY?
For our guaranteed rent clients:

Yes, our landlords get paid the full agreed rent no matter what. Even if the property is empty.

For our lettings clients:

No, the rent is only paid to the landlord when the tenant pays -as per our agreement. 

WHO PAYS FOR THE GAS SAFETY CERTIFICATE?
For our guaranteed rent clients:

We cover all the mandatory certificates, Gas Safety, Electrical Installation Condition Report (EIRC), Energy Performance Certificate (EPC) and fire alarm bi-annual servicing.

For our lettings clients:

We will organise the renewal of all certificates but the cost will be passed onto the landlord as per the trade invoice.

WHICH PROPERTIES DO YOU TAKE ON FOR GUARANTEED RENT?

We usually focus on houses of multiple occupancy (HMOs), however, we can offer guaranteed rent services in the following property types:
● Houses of 4 and up to 6 bedrooms in size outside the article 4 area.
● Houses of Multiple Occupation (HMOs).
● Houses converted into self-contained flats.
● Blocks of flats with three or more apartments.
● Large or small property portfolios.
● Properties in need of complete refurbishment.
● Empty properties.

If you have a property that does not meet this criteria, get in touch. We have other services that may be more relevant for your specific case. We will be happy to discuss other options with you.

To book a free call to discuss your options click here.

WHICH AREAS DO YOU COVER BY YOUR RENT-GUARANTEED SERVICE?

AMALIDA PROPERTIES Ltd covers Leeds, Bradford, Wakefield, Huddersfield, etc.

In short, any area within 1 hour drive from Leeds city centre.

If you require a different area, get in touch with us at this number 0113 519 1369 or by email info@amalida.com

DO YOU SUBLET MY PROPERTY?

No, other guaranteed rent companies use AST’s or commercial contracts that do not protect you as the landlord. Unlike them we use a bespoke management contract that not only protects our rights but yours as well. This specific property management agreement gives us the right to rent your property and manage the tenants, utilities, etc as if we were the landlord.

MY PROPERTY IS IN NEED OF TLC, WOULD YOU STILL BE ABLE TO OFFER A GUARANTEED RENT?

Yes, with our guaranteed rent agreement, we can include a light refurb of your property. So that your property is back on the market and ready for tenants.

HOW LONG ARE THE RENT GUARANTEED CONTRACTS?

Our rent guaranteed rent contracts typically last for 5 years.

WHAT HAPPENS IF THE TENANTS DAMAGE THE PROPERTY?
For our guaranteed rent clients:

AMALIDA PROPERTIES Ltd covers any tenant damage.

For our lettings customers:

The cost of tenant damage falls on you -as per your contract. However, we will be more than happy to assist you in organising the repairs.