A guaranteed rent scheme affords a landlord peace of mind in the knowledge that they will receive a fixed monthly income from their letting agent even if their property is vacant, or rents have not been received. In return the landlord will generally receive reduced returns from what they would normally receive under the standard mechanism of receiving rents less management fees.
If a landlord is participating in a Guaranteed Rent Scheme then you can reflect this on each of their properties by following the steps below:
1. Identify the property which operates under the guaranteed rent scheme.
2. Within the Summary tab you'll see a the Guaranteed Rents table in the bottom right of the screen. In the 'Effective Date' column specify the date on the property will come under the guaranteed rent scheme. Also enter the Guaranteed Rent value and click on the 'Add' button to the right.
By default the Guaranteed Rent value will be allocated to the landlord on the first day of the agreement and then again on the same day each month going forward. Other setups are available, e.g. rents are allocated on a fixed day each month, irrespective of the start date.
• If your account is configured to apply rents on a fixed day each month then the first guaranteed rent payment will be made to the owning landlord on the next rent allocation day after the guaranteed rent scheme commences for the property instance.
•If your account is configured to apply rents on a fixed day each month and the property reverts to standard management, then the last guaranteed rent payment will be made on the next rent allocation day after standard management becomes effective.
• Whilst a property is managed under the guaranteed rent scheme the income section of landlord statements will only show guaranteed rent payments and exclude any rent receipts.
• The Management Revenue Report (available from Reports -> Bank) will include detail of profits made from (or losses incurred by) properties on the guaranteed rent scheme.
• Whilst a guaranteed rent scheme is in operation, landlords accessing RentPro will be prevented from generating rent reports for such properties, or viewing the rental value of these properties.