Rent Guarantee for Cardiff Local Housing Allowance & Housing Benefit Tenants

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Rent Guarantee for Cardiff Local Housing Allowance & Housing Benefit Tenants

Most landlords will run a mile at the mention of Local Housing Allowance (LHA) rates and tenants on Housing Benefit (HB) and insurance companies just aren’t happy with the risk of providing rent guarantee insurance to this tenant demographic, but guess what at Rent Guarantee Cardiff we are more happy to provide landlords across Cardiff and South Wales a guaranteed rental income for a period of 3 years or more!

Yes, I will say it again, we will provide landlords across Cardiff and South Wales a guaranteed rental income for 3 or more years, with no set up costs, no managements fees or void periods even if your property is located in a predominately LHA area and only like to attract tenants on Housing Benefit!

This gets better as well! We can provide Cardiff landlords and property investors across South Wales with up to 90% of the open market rent each month on the same day, with no void periods, no council claw backs and no tenant interaction, what a dream!

Could renting your property get any better? We yes it can! On top of guaranteeing your rent for a period of 3 years or more, with no management fees or void periods we can also provide at least a 20% increase on your rental income over the 3 year period compared to a standard letting agent charging 10% management fees and 50% of the first month’s rent as a tenant find service. Take a look for yourself:

TRADITIONAL LETTING AGENT RENT GUARANTEE CARDIFF
Rent Agreed   £650.00 £585.00
– Agency Fee 10% + VAT £78.00 £0.00
– Guaranteed Rent Insurance 1.9% + VAT £14.82 £0.00
Net Rent to Landlord Rent After Monthly Fees £557.18 £585.00
3 Year Period Net Rent x 36 Months £20,058.48 £21,060.00
– Tenant Find & Set Up Fees 50% 1ST Months’ Rent + VAT (Assumes 3 Tenancies) £1,170.00 £0.00
– Typical Void Periods Over 3 Years 2 Months Out Of 36 £1,114.36 £0.00
– Inventory Costs Sign In & Out £150+ VAT (Assumes 3 Tenancies) £540.00 £0.00
Total Rent Received By Landlord Over 3 Years £17,234.12 £21,060.00
Average Monthly Rent Total rent Divided By 36 £478.73 £585.00
   
Extra earned renting with us £3,825.88
Extra Average Monthly Rent Earned With Us £106.27
Increase in rental income using our rent guarantee 22.20%

So let’s recap:

  • Yes, we will guarantee to pay you rent even if you property is in a predominately LHA area and likely to only attract tenants on Housing Benefit
  • You will not have to put your hand in your pocket to pay any set up fees, tenant finder fees or management costs
  • We guarantee you no void periods for the full 3 year term and will even cover any legal fees if we need to evict tenants
  • We guarantee you will have no interaction from the tenant regarding maintenance issues, we take care of that
  • Here’s the good bit again, we can offer up to 90% of the open market rent through our rent guarantee scheme
  • One more thing, we can increase your rental income by at least 20% if you are using a traditional letting agent

So if you are a Cardiff Landlord or South Wales property investor with a property either vacant now or with a tenancy coming up for renewal and the property is a Local Housing Allowance area and only likely to attract Housing Benefit tenants, why not contact us today and make your life a whole lot simpler

Are You Prepared For Your Next Void Period?

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Are you prepared for your next void period? A study by the National Landlords Association is found that a staggering 90% of private landlords say they haven’t factored in the financial impacts of void periods when letting their property.

Of the private landlords surveyed when questioned how they propose to cover the cost of a rental void 19% responded by using their day job earnings, 17% when questioned would use existing savings and a 16% said they would just accept the fact their property was not let.

34% of landlords who responded to the NLA survey said they had experienced a void period in the last 12 months.

According to the NLA, the findings suggest that a significant number of landlords may not have a business plan in place when they start letting.

“It’s imperative that prospective landlords don’t underestimate what they’re getting into,” said Carolyn Uphill, chairman of the NLA.

“We’ve always said that being a landlord is a business and to run it successfully means you have to plan for the future to make sure you avoid the pitfalls such as voids.

“We recommend budgeting for 10 months’ rent in any 12-month period to allow for missed rental payments and voids. It’s also essential that landlords carry out checks on potential tenants to minimise their risk of non-payment.”

At Rent Guarantee Cardiff we provide private landlords with an alternative solution , our guaranteed rental scheme is the perfect way to eliminate the void periods, while ensuring your property is managed by a professional Welsh accredited landlord.

If you have a property in Cardiff or across South Wales and would like to find out how you can eliminate void periods while not incurring any agents and management fees, please complete the short contact form below:

Guaranteed Rental Scheme Case Study: Helping with Negative Equity

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Our guaranteed rental scheme has benefited a number of Cardiff & South Wales property owners with negative equity.

This case study highlights how a young Cardiff couple with help from our guaranteed rental scheme were able to move up the property ladder while keeping their existing property.

Background

We were contacted by a professional couple in 2011 that had a 2 bedroom house located in the Pontcanna area of Cardiff.  The property was in negative equity, but they had recently inherited money and had agreed the purchase on their forever home at a bargain price.

Their plan was simple, to purchase their dream home at what they perceived a bargain price while rent out their existing home which was in negative equity and wait for house prices to recover to release equity or dispose of the property.

The couple had no experience of being a landlord, finding tenants or property management experience, and coupled with the added financial burden of a second larger mortgage wanted the security of a guaranteed rental scheme, with no void periods or tenant hassle.

The couple had invited several local Cardiff lettings agents to provide a rental appraisal so had a clear understanding of the rental market and the rental income their property could achieve so were pleasantly surprised when we provided them with a competitive guaranteed rental income to be paid on the same day of each month, with no set up costs, tenant finder’s fees or management fees.

 Guaranteed Rental Scheme Process

As the Cardiff property in Pontcanna was on a residential mortgage we advised our client to obtain permission to let as well as advising them to obtain landlords insurance, a Gas Safety Certificate and an Energy Performance Certificate (EPC).

Once all the required documentation was in place a commercial contract for our guaranteed rental scheme was signed by both parties, highlighting any circumstances which may result in a breach of contract by either party, the responsibilities of both parties as well as the amount of guaranteed rent and the date on which it will paid each month.

Once the coupled has a confirmed completion date on their house purchase a date was agreed for when our guaranteed rental scheme would commence.  In the mean time we actively marketed our client’s property on major internet portals such as Rightmove and Zoopla, conducted viewings and fully referenced suitable tenants including credit check, employment references and previous landlord’s references at no cost to our client.

Prior to our client handing over the keys to their house a detailed inventory was carried out including photographs with our client present, to ensure they were 100% happy with the condition of the property at the beginning of the Guaranteed Rental Scheme and also at the end of the process before the property was handed back to them with vacant possession.

The tenant selected was an anaesthetist working on a 2 years secondment at the University Hospital Wales and was provided with a 6 month Assured Shorthold Tenancy (AST) agreement, once again a detailed inventory was conducted, a deposit was taken and logged with The Deposit Protection Service (www.depositprotection.com) and Prescribed Information and Terms of Business of The DPS all served within the required 30 day period therefore insuring both our Guaranteed Rental Scheme and our landlord client is legally compliant.

If you would like to find out more about our Guaranteed Rental Scheme please complete the form below to receive a call from one of the team: