Guaranteed rent is one of the most searched-for options among London landlords who want a reliable income without the work of letting. This guide explains how guaranteed rent works in London, how it compares with traditional letting and fully managed short lets, and what to check before you sign.
What Is Guaranteed Rent?
With guaranteed rent, a company agrees to pay you a fixed monthly rent for a set term. The company then runs the property, often as serviced accommodation or short lets for business travellers, relocating professionals and visitors. You receive the agreed amount every month, whether the property is fully booked or quiet.
The company takes on the booking risk, the guests, cleaning and the day-to-day running. In return, the guaranteed figure is usually lower than the property might earn in a strong year if you kept the income yourself.
How Guaranteed Rent Works in London
- Assessment: the company looks at your property’s location, size, condition and nearby demand.
- Offer: you receive a monthly rent figure and a proposed term.
- Agreement: both sides sign a written agreement covering rent, term, bills, repairs and condition.
- Set-up: the property is prepared for guests, with photography, listings, furnishing and linen as needed.
- Monthly payments: you receive the agreed rent on the agreed date for the length of the term.
Guaranteed Rent and London’s 90-Night Rule
In London, an entire home can only be let as short-term accommodation for up to 90 nights a year without planning permission. A responsible guaranteed rent operator plans around this from day one, for example by combining short stays with longer serviced accommodation bookings for corporate and relocation guests. Ask any company how they will stay within the rule for your property. Read our full guide to the 90-day rule in London.
Guaranteed Rent vs Other Options
| Guaranteed rent | Fully managed short let | Traditional long let | |
|---|---|---|---|
| Income | Fixed monthly amount | Varies with bookings | Fixed rent from a tenant |
| Void periods | None for you | Your risk | Your risk between tenants |
| Day-to-day work | None | None, if managed | Some, unless fully managed |
| Property checks | Regular, as guests change over | Regular, after each stay | Periodic inspections |
| Best for | Certainty | Maximum income | Long-term, hands-off letting |
For a closer look at the short-let side, read Airbnb vs traditional tenancy for landlords.
The Pros and Cons
Advantages
- A predictable monthly income, which helps with mortgage payments and planning
- No void periods, tenant-finding or guest management
- Regular cleaning and checks, so problems are spotted early
Things to weigh up
- The guaranteed figure is usually below the property’s best-case short-let income
- You are relying on the company to pay on time and look after the property, so choosing the right partner matters
- Your lease, mortgage and insurance must allow the arrangement
What to Check Before You Sign
- Who the company is: how long they have operated, who runs it and how they manage properties
- Term and break clauses: how long the agreement lasts and how it can end
- Payment terms: the payment date, and what happens if a payment is late
- Bills: who pays council tax, utilities, broadband and insurance
- Repairs and condition: who covers which repairs, and how the property is returned, backed by an inventory
- Consents: whether your lease, freeholder, mortgage lender and insurer allow it
- Compliance: how the company will handle the 90-night rule, safety certificates and building rules
Always take independent legal advice before signing a guaranteed rent agreement.
Is Guaranteed Rent Right for You?
Guaranteed rent suits landlords who value certainty over the highest possible income, such as those covering a mortgage, living abroad, or who simply do not want any involvement. If you would rather keep the full upside of short-let income, full management may suit you better. Many landlords compare both before deciding.
Frequently Asked Questions
Is guaranteed rent legal in London?
Yes, guaranteed rent agreements are legal. The property must still be used in line with planning rules, including the 90-night limit for whole-home short lets, and with your lease, mortgage and insurance terms.
How much guaranteed rent can I get in London?
It depends on the property’s location, size, condition and demand. A reputable company will give you a specific figure after assessing your property, not a generic estimate.
Who pays the bills under guaranteed rent?
This varies by agreement. Many guaranteed rent agreements have the operator cover utilities and running costs, but always check exactly what your agreement says.
Can I end a guaranteed rent agreement early?
Only in line with the break clauses in your agreement, so check these carefully before you sign.
Get a Guaranteed Rent Offer
Ichiban Stays offers both guaranteed rent and full management, with no upfront fees. Book a free consultation and we will send you a guaranteed rent figure and a fully managed projection for your property, so you can compare them side by side.