Guaranteed rent
What Happens at the End of a Guaranteed Rent Agreement?
Most landlords focus on the start of a guaranteed rent agreement. But it's just as important to know what happens at the end. The good news is that it can all be agreed in writing from day one.
Your options at the end of the term
- Renew. Many landlords choose to carry on, often on a new figure that reflects the market at the time.
- Switch to management. Some landlords move to a management arrangement to keep more of the income.
- Take the property back. To sell, move in, or let it another way.
Handing the property back
Inventory and condition
A detailed inventory with photos at the start is the fairest way to compare condition at the end. The usual standard is that the property is returned in the condition it was taken, allowing for fair wear and tear.
Repairs and redecoration
The agreement should say who is responsible for repairs during the term and what condition is expected at handback, including any redecoration.
Furniture
If the operator furnished the property at its own cost, agree up front whether the furniture is removed at the end, left for you, or offered to you at an agreed price.
Keys, meters and bills
Final meter readings, the return of all keys and fobs, and transferring bills back into your name should all be part of a simple handback checklist.
Ending early
Check whether the agreement has a break clause, and on what notice. If you might want to sell during the term, raise it at the start so the agreement can reflect it.
What to agree before you sign
- The handback standard and how fair wear and tear is judged.
- What happens to any furniture the operator provided.
- Notice periods for renewal and for any break clause.
- Who arranges and pays for the check-out inventory.
We put all of this in writing before any guaranteed rent agreement starts, and we're happy for your solicitor to review it.