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ROWE & HART

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The Journal/Landlords

Landlords

Guaranteed rent under the Renters' Rights Act: what it solves, what it can't

July 20264 min read

The honest answer first: guaranteed rent solves the income problem, not the law problem. A fixed monthly figure, paid whether the property is occupied or not, is unchanged by the Act and arguably more valuable under it. But the Renters' Rights Act governs the tenancy of whoever lives in your property regardless of who manages it, and no agreement can contract out of statute.

What it genuinely solves

  • Void risk: longer tenant notice patterns and slower possession make gaps costlier to the unprepared. A guaranteed figure makes them our problem.
  • Arrears risk: the higher arrears threshold before mandatory possession means unpaid rent can run longer. Under guaranteed rent, your payment does not depend on the tenant paying.
  • Administration: rent increases on the right form, information sheets, request handling. Done properly, by us, during the term.

What it cannot do

It cannot make statutory duties disappear. Licensing obligations attach to the property, safety obligations attach to whoever holds them under the agreement, and the occupying tenancy carries the Act's protections whoever the landlord under it is. A written agreement should say exactly who holds what. Ours does, and we will walk you through it line by line before you sign.

Anyone selling guaranteed rent as a way around the Renters' Rights Act is selling you a problem with a fixed monthly income attached.

The trade remains what it always was: the guaranteed figure sits below full market rent because risk is moving off your books. If that trade suits you, the new legal landscape strengthens the case. If it does not, we will tell you, and suggest Full Management instead. General guidance, not legal advice.

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Related

Guaranteed Rent, explained honestlyGuaranteed Rent for landlordsRenters' Rights Act hub

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