Guaranteed Rent

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    Guaranteed Rent

    Hi All,
    I’ve found a management agent who has agreed to pay guaranteed rent. I have a 3 bed flat plus living room in London. I believe the agent will manage the property as room lets as a 4 bed and has said that there will never be more than 4 people. This means that I will not require a HMO license. However, I’m rather concerned that, what if the management agent decides to let property to 5 or more people even though I’ve made it clear I only want 1 person per room.

    If agent does indeed let it to 5 or more people, where do I stand as I don’t want to be in any kind of sticky situation with the council and want to do this properly. Can I ask agent to draw up a contract stating that only 4 people allowed in property?



    #2
    Up the proverbial without a paddle.

    Is this a contract where you allow agent to let to tenants with them as named landord?
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

    Comment


      #3
      I don't think you will find anyone here that would advise you to consider a rent to rent arrangement.

      However having only four people doesn't make you immune from licensing, as the council could bring in Additional Licensing, quite popular in London. Even if you don't need a licences you still need to comply with the health and safety and other management standards.

      Comment


        #4
        As above, avoid these sorts of arrangements. Unless you want to risk your money, health and sanity.

        Comment


          #5
          Are you a glutton for punishment, Bassmonster?

          We are all happy here to help landlords who have got into trouble accidentally. If you go with this scheme, we might begin to think it is recklessness. One word: 'Don't!'

          Comment


            #6
            Originally posted by theartfullodger View Post

            Is this a contract where you allow agent to let to tenants with them as named landord?
            I'm not too sure to be honest as this is the first time i'm looking into such a scheme.

            Thank you all for your replies.

            i think i'll stick with a single AST. It does seem like more hassle than it's worth.

            Comment


              #7
              To answer the question, the HMO would be managed by the agent, so the responsibility for compliance with the regulations falls on them.
              Make sure their contract doesn't try and pass on any liability to you.

              To be honest, the HMO regulations are pretty much the same for a licenced and unlicenced HMO.

              And, as above, don't.
              When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
              Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

              Comment


                #8
                There's no such thing as guaranteed rent. You're simply swapping one payment risk (the tenant) for another (the agent).

                Plus what everyone else said. Don't do it.

                Comment

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