Guaranteed rent is a concept in real estate where a landlord or property owner receives a fixed rental income, usually on a monthly basis, regardless of whether the property is occupied or generating rental income. It provides a level of financial security to the property owner by guaranteeing a consistent cash flow, even during periods of vacancy or non-payment by tenants.
Typically, a guaranteed rent scheme is offered by a third party, such as a letting agent or property management company, who agrees to pay the landlord a fixed rental amount for a specific period, regardless of occupancy. The third party assumes the responsibility of finding tenants, managing the property, and dealing with any rental arrears or property maintenance issues.