How Much Guaranteed Rent Will I Get in London? How the Figure Is Worked Out

The first question every landlord asks is "how much will you pay me?" There's no fixed rate card, because every property is different. But the figure isn't a mystery either. Here's what goes into it and how to judge an offer.

What an operator looks at

Location and transport

Guests on longer stays want to be near work, hospitals, universities and good transport. A flat a few minutes from a mainline or Underground station will usually attract a stronger figure than one a bus ride away.

Size and layout

The number of bedrooms, bathrooms and how many people the property can comfortably sleep matter more than floor area alone. Two bathrooms in a three-bedroom flat, for example, make a real difference for groups and families.

Condition and finish

A property that's ready to go needs less investment before it can earn. If work is needed, an operator may still take it on, but the cost of that work is reflected in the figure or the start date.

The length of the agreement

Setting a property up properly takes money: furniture, linen, photography and compliance. A longer agreement gives the operator time to recover that cost, which is why three- to five-year terms often come with a better monthly figure than a one-year term.

Furnishing

If the operator is furnishing the property at its own cost, that investment is part of the calculation. A well-furnished property can sometimes command a higher figure.

How it compares with a normal let

A guaranteed rent figure is often close to, and sometimes a little below, the headline rent you'd advertise on a standard tenancy. That's because you're no longer paying agency fees, covering voids or paying for routine maintenance. The fair comparison is with the rent you actually keep after those costs, not the headline figure. See our worked comparison.

Questions to ask about any offer

• Is the figure fixed for the whole term, or does it change at set points?
• Which bills does the operator pay, and which stay with you?
• When is the first payment, and on what date each month after that?
• Who is responsible for which repairs?
• What happens at the end of the term? (See what happens at the end of an agreement.)

Getting a real number

Online rent calculators can't see your street, your layout or your finish. The quickest way to know is to ask for a written figure. We'll send you one within one working day: request a free valuation.