- Guaranteed rent is safe when the contract is clear about payment, term, repairs, handback condition and who holds any licence.
- Expect the guaranteed figure to sit below full market rent; the operator carries voids, arrears and management costs.
- Check your mortgage lender and insurer allow a company let before you sign.
- Ask who the end occupier is and what demand backs the contract, such as a local authority or corporate client.
Guaranteed rent schemes sound simple: a company rents your property for a fixed term and pays you a set amount every month, whether or not anyone is living there. The model is genuinely useful, and since the Renters' Rights Act it has become one of the most effective ways to remove risk from a buy-to-let. We explain why in why guaranteed rent is the lowest-risk option in 2026.
But not every scheme is built the same way. Before you sign anything, these are the twelve questions to ask.
About the contract
1. Who exactly is the contract with?
Most schemes are a company let: you contract with a limited company, which then provides the home to an occupier. Know the legal name of that company and check it on Companies House.
2. Is the rent paid when the property is empty?
This is the whole point. The contract should state plainly that rent is paid every month regardless of occupancy. Watch for clauses that pause payment during “refurbishment” or “void” periods.
3. How long is the term, and what are the break clauses?
Terms of two to five years are common. Check who can end the agreement early, with how much notice, and whether a break clause can be used in the first year.
4. How and when is the rent reviewed?
A five-year fixed figure is attractive for certainty but can fall behind the market. Look for a stated review mechanism, or decide consciously that you prefer a flat figure.
About the property
5. Who pays for repairs and maintenance?
Most operators handle day-to-day maintenance. Structural items, major systems and buildings insurance usually remain with the owner. The split should be written down, with a spending limit above which you are consulted.
6. What condition will the property be returned in?
A good contract includes a detailed inventory at the start and a commitment to hand back in the same condition, fair wear and tear excepted. Without a check-in inventory, that promise is hard to enforce.
7. Who handles compliance and licensing?
Gas safety, electrical checks, alarms and any HMO, additional or selective licence: who arranges them, who pays, and who holds the licence? See our London licensing guide for why this matters.
About your own position
8. Does your mortgage allow it?
Many buy-to-let mortgages require lender consent for a let to a company rather than to individuals. Check before signing. A breach of mortgage terms is a far bigger problem than any rent saving.
9. Is your insurance correct?
Your landlord or buildings insurer needs to know the property is let on a company let. Ask whether the operator also carries its own insurance for its occupation.
About the provider
10. Who is the end occupier, and what backs the demand?
The guarantee is only as strong as the demand behind it. Schemes linked to local authority housing need, or to corporate accommodation clients, rest on deep and steady demand. Ask how the provider sources occupiers. Our article on how councils source private housing explains the local authority side.
11. Is the provider a member of a redress scheme?
Property agents in England must belong to a government-approved redress scheme, such as the Property Redress Scheme. Membership gives you an independent route if something goes wrong.
12. Can you speak to existing landlords?
A provider confident in its service will put you in touch with current clients, and its online reviews should describe real experiences over a period of time.
Red flags
- Pressure to sign quickly, or reluctance to put terms in writing.
- A guaranteed figure well above the open-market rent. Guaranteed rent normally sits below market rent because the operator carries the risk; a figure above market does not add up.
- No inventory, no handback clause, or vague repair responsibilities.
- Payment that depends on the property being occupied.
- No redress scheme membership.
Two different kinds of guarantee
At Morgan Prescott we offer two, because they suit different owners:
- Guaranteed rent: for qualifying properties, a bespoke company-let contract underpinned by our local-authority partnerships, with a fixed monthly rent on terms from two to five years, occupied or not.
- Rent Secured: stay on the open market and keep market rent, with the rent guaranteed for the life of each tenancy and the possession process funded if a tenant stops paying. Voids are excluded, and we say so plainly.
Both come with full terms in writing before you commit. A free appraisal shows the figures for each route side by side.
General information, not legal or financial advice. Take independent advice on any contract before signing.