What is a guaranteed rental property?
Sometimes also known as a leaseback property, guaranteed rental property is one which offers you a contractual agreement detailing how much rental income you will receive. For example you will know before you purchase your property that you may get 5% of the properties price as an annual rental guarantee.
Why would you want to buy a property with guaranteed rent in Sahl Hasheesh?
There are 2 reasons why you may consider purchasing this kind of property
- Less headache. When someone offers you a rental guarantee, they take on the responsibility of renting, managing and looking after the property during the rental guarantee period.
- Less Risk. With a rental guarantee, you get the rental guarantee whether the developer/owner rents your property or not.
Is there a catch?
- Rental guarantees may offer you less than you can achieve marketing the property yourself
- Rental guarantees normally limit the personal usage of a property. You cannot for example use your property for 3 months while receiving a rental income
Is the rent loaded onto the price and am I paying for it?
You can normally find this by comparing the cost of the property with the competition around it. If the property with the rental guarantee are a lot higher in cost than other properties, with no added benefits, then yes the rental income is loaded on the price and you are effectively paying for your own guarantee.
Is a rental guarantee suitable for me?
Rental guarantees are suitable for Pure investors who want little involvement with management and rental of the property, and those who also want brief personal holiday usage out of their investment property.
Properties offering guaranteed rental income:
The following developments have guaranteed rental income available.
