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Writer's pictureElliot Leigh

Private Rent vs Guaranteed Rent: Income Comparison for Landlords

Updated: Jul 23

Save Money with Elliot Leigh’s Guaranteed Rent Scheme


If you're a landlord looking to maximise your rental income while minimising hassles, Elliot Leigh’s Guaranteed Rent scheme might be the perfect solution for you.


Using an example, let's break down how this scheme can save you money compared to traditional private renting.



Private Rent

Guaranteed Rent via Elliot Leigh

Monthly rent income

£1,650

£1,650

Annual rent income

£19,800

£19,800

Commission @ 10%

-£1,980

£0

VAT @ 20%

-£396

£0

Referencing/set up fees

-£250

£0

Inventory/ check-in/ check out

-£250

£0

1 month empty period

£1,650

£0

Total annual income

£15,274

£19,800


Understanding the Comparison

The above table offers a clear comparison between the financial outcomes of private renting and opting for Elliot Leigh's Guaranteed Rent scheme. Here are the key takeaways:


Monthly and Annual Rent Income

Both private renting and the Guaranteed Rent scheme offer the same monthly rent income of £1,650, which sums up to an annual rent income of £19,800. However, the real difference lies in the deductions and additional costs.


Cost Deductions


1. Commission and VAT

  • Private Rent: You'll incur a commission fee of 10%, which is £1,980 annually. Additionally, there's a VAT of 20%, which adds another £396 in costs.

  • Guaranteed Rent: With Elliot Leigh, you don't have to worry about commission or VAT. That’s an immediate saving of £2,376 per year.


2. Referencing and Setup Fees

  • Private Rent: Typically, you'll need to pay around £250 for referencing and setup fees.

  • Guaranteed Rent: These fees are completely waived under the Guaranteed Rent scheme.


3. Inventory/Check-In/Check-Out Fees

  • Private Rent: These additional administrative fees can cost you another £250.

  • Guaranteed Rent: Again, these costs are covered by Elliot Leigh, meaning no extra expense for you.


4. Empty Periods:

  • Private Rent: One of the significant risks of private renting is the potential for vacant periods. The table assumes a one-month empty period, costing you £1,650.

  • Guaranteed Rent: With Elliot Leigh, you get a consistent income without worrying about vacancies. Your rent is guaranteed regardless of whether the property is occupied or not.


Total Annual Income

When all these costs are accounted for, your total annual income from private renting drops to £15,274. In contrast, with Elliot Leigh’s Guaranteed Rent scheme, you retain the full £19,800. This means you can save and earn an additional £4,526 annually by choosing the Guaranteed Rent scheme.


Conclusion

Elliot Leigh’s Guaranteed Rent scheme not only provides a hassle-free rental experience but also ensures that you maximise your rental income by eliminating various costs associated with private renting. If you're looking for a reliable and financially sound rental option, this scheme offers a compelling alternative to traditional renting methods. Save money and enjoy peace of mind with Elliot Leigh’s Guaranteed Rent.


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