| Guaranteed Rent | Traditional Letting | |
|---|---|---|
| Monthly income | Fixed — paid every month | Variable — depends on tenants |
| Void periods | Paid whether or not it is let | 2-4 weeks/year typical |
| Rent arrears risk | Company pays you, not the tenant | You bear the risk |
| Management | Included in the lease | Self-manage or 8-12% agent fee |
| Maintenance | Handled by company | Your responsibility |
| Tenant finding | Not needed | Agent fee or your time |
| Contract length | 3-5 years | 6-12 month ASTs |
| Gross rent level | 10-15% below market | Full market rate |
| Net income (after costs) | Often comparable or higher | Reduced by fees, voids, arrears |
| Stress level | Minimal | Variable |
| Best for | Hands-off, portfolio, overseas | Local, single property, experienced |
The real income comparison
Let's say you have a 3-bed house in Birmingham worth £850/month market rent.
Guaranteed Rent
Traditional Letting
In this example, guaranteed rent delivers £984 more per year in actual income — despite the lower headline rent. And that's before factoring in the value of your time, stress, and the risk of a bad tenant. You can model your own void period costs and monthly cash flow with our free calculators.
When traditional letting wins
Traditional letting can be the better choice if:
- You self-manage and live near the property (no agent fees)
- You have long-term, reliable tenants already in place
- You enjoy the hands-on aspect of being a landlord
- You have a single property and the premium matters
When guaranteed rent wins
- You have multiple properties and want scale without hassle
- You live far from the property or overseas
- You need guaranteed income to cover mortgage payments
- You've been burned by bad tenants, arrears, or void periods
- You value your time and peace of mind
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Book free valuationFrequently Asked Questions
What is the difference between guaranteed rent and traditional letting?
With guaranteed rent, a company leases your property and pays you a fixed rent regardless of whether it's occupied. With traditional letting, you (or an agent) find tenants directly — you receive market rent but bear the risk of voids, arrears, and management costs.
Do I earn more with guaranteed rent or traditional letting?
Traditional letting typically offers 10-15% higher gross rent, but after deducting management fees (8-12%), void periods (2-4 weeks/year), maintenance, and arrears risk, guaranteed rent often delivers comparable or higher net income with zero hassle.
Who is guaranteed rent best for?
Guaranteed rent is ideal for landlords who want hands-off income, those with mortgages requiring consistent payments, portfolio landlords scaling up, overseas landlords, and anyone who values certainty over chasing maximum rent.
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