Questions Every Guaranteed Rent Agency Should Ask Prospective Landlords

A guaranteed rent agency is only as strong as its property portfolio and the processes used to manage it. When bringing on new properties, it is important to have a quick turnaround from the agreement stage with the landlord to the move-in process of the new tenants.

The quality of information you get from your landlords will play a vital role in how well you market and fill the property. That quality will come from the questions you ask, so here’s a guide of important questions to ask prospective landlords interested in signing up for a guaranteed rent scheme with your agency.

1. Why (Guaranteed) Rent?
Before partnering up with a new landlord, it is a good idea to understand why they have chosen the guaranteed rent model. Understanding their goals will give you a better idea of what their goals are and if your agency is equipped to help them achieve them.

Each landlord opts for the guaranteed rent model for different reasons. This could include wanting financial security. Plans to relocate or be more hands-off from day-to-day property management. Intentions to expand their current property portfolio. Or other more unique reasons.

Knowing why a prospective landlord wishes to start a guaranteed rent scheme will allow you to align their goals with yours.

2. Have You Rented Before?
Landlords who have previously rented their property will have an idea of what to expect. Whereas individuals who are new to renting out their property may require more patience. New renters will likely have more questions and reservations, so be patient and guide them through the process.

Answer all questions as professionally as possible. As they build their trust in your agency, closing them as a client will be much easier.

3.  How Long Are You Interested in Renting For?
Guaranteed rent agreements range anywhere between 1-5 years. It is important to make landlords aware of the commitment involved in signing to a guaranteed rent scheme. Unlike traditional rent schemes, with most agencies, ending guaranteed rent contracts early may result in a hefty cancellation fee.

However, longer contracts, offer more stability for your portfolio will be built on. So it is a good idea to build a strong relationship with your landlords to increase your chances of contract extensions.

4. What Maintenance Work Has Been Done Previously?

When taking on a new property, you are stepping into unknown territory. A property may look good on the outside but may be riddled with all kinds of issues.

It is always good practice to ask the landlord about previous maintenance works and any outstanding repairs. This will help you and your team plan ahead of time and pay extra attention during property inspections.

It is in the landlord’s best interest to share these details with you so that your agency can support in retaining the property’s value by ensuring everything is kept in good condition.

5. When Was The Boiler Last Serviced?

Boilers play an important role in every household. However, many landlords neglect them despite their necessity and the potential costs that could come from a breakdown.

Knowing the last time a boiler was changed or serviced will help you gauge the risk of potential breakdowns during the tenancy. If the landlord has not serviced their boiler in a while, it is essential to get this done as soon as possible. Otherwise, you risk boiler faults, unforeseen costs and dissatisfied tenants.

6. How Energy Efficient Is The Property?

With the minimum EPC rating to rent a property in the UK changing to C in 2030, knowing how efficient a landlord’s property is will help estimate what sort of costs to expect from the property. This information will be useful for forecasting utility costs during the colder months.

In addition to this, it will help take proactive steps in preparing for the changing regulations. Ensuring that your rental property is compliant with all legal obligations will save your agency unnecessary fines from the council.

Remember, when taking on a guaranteed rental property, your agency becomes responsible for the legal compliance of the property as well as making sure all certificates are up to date.

7. Are Tenants Allowed To Redecorate?
Landlords are often flexible with tenants redecorating their homes; however, do not assume. It is worth asking the landlord if tenants are allowed to make changes, and if so, to what extent.

This doesn’t mean a complete revamp of the whole house, this is simply minor changes to furniture or rearrangements to the room. Giving tenants this option to personalise the property is a great way to build your relationship with the tenants and improve retention.

8. What Are The Transport Links and Parking Like?

A major contributor to a property’s value is its access to transport links. If the property is in unfamiliar territory, it is important to get an overview of the surrounding transport links. This is a question that interested tenants will ask during viewings, so having this knowledge to hand will be useful.

Also, find out what the parking availability is like. For tenants with cars, access to parking can be a make-or-break factor as to whether or not they choose a property. A home with good transport links and parking options will be highly valued, whereas if the property has neither, it may be more challenging to get off the market.

9. What Day Is Garbage Collection?
Garbage collection differs with each borough. It is good to get this information early so it can be shared in the tenants’ handbook as they move in. Most garbage collection days happen once a week, usually rotating between general waste and recycling.

If a tenant misses collection day, it is common for waste to pile up, usually leading to overflowing bins. When this happens, it gives the property a bad look and may raise concerns from the landlord about whether or not their property is being taken care of.

10. How Is The Area?
If the new property is in a new location, then ask about the area. This will not only help when speaking with tenants during viewings, but it could also be an opportunity to learn about potential target areas for your agency’s growth.

Landlords will have a first-hand understanding of the surrounding area, amenities, schools, local shops, and the safety of the community. Having this information will help when assessing whether or not taking on the property could be profitable for your business.

The Importance of the Right Questions
When it’s all said and done, taking on a new property as a guaranteed rent agency can be exciting for the company. However, if enough due diligence hasn’t been done before signing a long-term agreement, that property may become a liability to the business.

It is important to ask the right questions when speaking with new landlords. The risk you take on is minimised, and you’ll demonstrate a level of professionalism and attention to detail that landlords and tenants will notice as you continue to build your reputation in the industry.