Guaranteed rental schemes 'must be thoroughly researched'

News Category: Management

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Buy-to-let landlords looking to guaranteed rental schemes as a potential "safety net" during the recession have been advised to first research any such offer thoroughly.

Guaranteed rental schemes, which involve signing over a property for a letting agent to rent in exchange for a fixed monthly payment, have been seen as a potentially attractive option during the recession.

However, the Independent has suggested that landlords first weigh up the pros and cons of such a scheme, as it may not suit every property owner.

For example, although an income will be guaranteed, landlords may find themselves earning less than they would if they were letting the property themselves.

Ian Potter, operations manager for Arla, also added that landlords should ensure they remain aware of the calibre of tenants being selected by letting agents.

He said: "Ask what measures they are taking to ensure that those tenants are being adequately checked."

This comes after Arla last week called for increased mortgage lending to be made available to landlords to help stimulate a recovery for the sector.

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