|
Private Rent pcm:
£2,000
|
Guaranteed Rent:
£1,700
|
|
|---|---|---|
| Annual Rent | Private Rent -£24,000 | Guaranteed Rent £20,400 |
| Management Fee @ 10% | Private Rent -£2,400 | Guaranteed Rent £0 |
| VAT @ 20% | Private Rent -£480 | Guaranteed Rent £0 |
| Referencing & set up fees | Private Rent -£250 | Guaranteed Rent £0 |
| Inventory, check in, check out | Private Rent -£250 | Guaranteed Rent £0 |
| Approx 1 month empty period | Private Rent -£1,800 | Guaranteed Rent £0 |
| Total annual income | Private Rent £18,882 | Guaranteed Rent £20,402 |
Landlords are responsible for more repairs and maintenance on private rental schemes hence these expenses will be significantly higher than on the Guaranteed Rent Scheme.
On private rental schemes tenants may not always pay their rents hence this risk is eliminated on the Guaranteed Rent Scheme
On private rental schemes, tenants often cause damages to properties hence adding to repair costs however on the Guaranteed Rent Scheme the property is refreshed during tenancies.
On private rental schemes, Landlords are responsible for the council tax and utilities when the property is vacant, but this does not apply on the Guaranteed Rent Scheme.
On private rental schemes landlords are responsible for evicting non-conforming tenants which can cost thousands. Non-conformances may include rent arrears and antisocial behaviour. On the Guaranteed Rent Scheme, Landlords are not responsible for evicting non-conforming tenants.
Please note, the example above may not reflect the costs or rents specific to your property
