Top 5 Myths About Guaranteed Rent (And the Truth Behind Them)

Guaranteed Rent has become increasingly popular with landlords looking for stability and simplicity. However, despite its growing presence in the market, there are still several misconceptions that cause hesitation.

In this blog, we address the top five myths about Guaranteed Rent – and explain the reality behind them.

Myth 1: “Guaranteed Rent Means Lower Income”

The Truth:
While the monthly figure may sometimes differ slightly from peak open-market rates, Guaranteed Rent provides consistent, uninterrupted payments.

Traditional letting can involve:

• Void periods
• Tenant arrears
• Court costs
• Letting fees
• Unexpected maintenance delays

When these are factored in, Guaranteed Rent often provides more predictable and financially stable returns over time. Stability frequently outweighs short-term fluctuations.

At Paul Alexander Group, we do not charge any commission or management fees either.

Myth 2: “I Lose Control of My Property”

The Truth:
You remain the legal owner of your property. Guaranteed Rent agreements are structured contracts where responsibilities are clearly defined.

In fact, many landlords find they gain more control – because compliance, inspections, and tenant management are handled professionally, reducing risk and mismanagement.

Myth 3: “The Property Won’t Be Looked After Properly”

The Truth:
Professional Guaranteed Rent providers conduct regular inspections and manage maintenance proactively. Because the provider is contractually responsible, there is a strong incentive to maintain the property to a high standard.

Clear reporting structures and routine oversight often result in better property management than informal or self-managed arrangements.

Myth 4: “It’s Only for Landlords Who Are Struggling”

The Truth:
Guaranteed Rent is increasingly chosen by experienced portfolio landlords, overseas investors, and professionals who want predictable income without day-to-day involvement.

It is a strategic choice – not a last resort. In a regulatory environment with increasing compliance requirements and the removal of Section 21, many landlords are choosing Guaranteed Rent as a proactive risk-management solution.

Myth 5: “It’s Too Good to Be True”

The Truth:
Guaranteed Rent works because the provider takes on management responsibility in exchange for fixed rental terms. It is not magic – it is structured property management with defined contractual obligations.

The key is working with a reputable provider who:

• Has a clear agreement
• Manages compliance properly
• Conducts regular inspections
• Maintains transparent communication

When structured correctly, Guaranteed Rent is simply a more secure and streamlined way of letting property.

Why More Landlords Are Looking at Guaranteed Rent

With increasing regulation, stronger tenant protections, and rising operational demands, landlords are seeking:

• Predictable monthly income
• Reduced legal exposure
• Professional compliance oversight
• Less day-to-day involvement
• Long-term peace of mind

Guaranteed Rent addresses all of these concerns in one structured solution.

Final Thoughts

Misunderstandings about Guaranteed Rent often come from outdated information or unclear communication. When properly managed, it is a stable, transparent, and practical option for landlords who want reliability in an evolving rental market.

If you would like to understand whether Guaranteed Rent is right for your property, our team would be happy to discuss your options and provide clear, straightforward guidance.