Is Guaranteed Rent Worth It for London Landlords?

Guaranteed rent is worth it for most London landlords who value certainty over squeezing out every last pound in a perfect month. The honest answer involves a trade-off, and this guide sets it out plainly: what you give up, what you get, and who the model genuinely suits.

Last updated: 14 July 2026

What is guaranteed rent?

Guaranteed rent is an arrangement where a company becomes your tenant and pays you a fixed monthly amount for the full term of a contract, whether the property is occupied or not. It is different from rent guarantee insurance and different from using a letting agent.

The London Landlord has operated this model across London and the South East for over 20 years, with more than 1,000 properties managed. Read more about how guaranteed rent works.

How much less is a guaranteed rent offer than market rent?

A guaranteed rent offer will be below the open market rate, and any provider who says otherwise is not being straight with you. The company takes on every void, maintenance issue, compliance obligation and risk that comes with the property, and needs a margin to cover that.

The right comparison is not our offer versus your best possible month. It is our fixed payment versus your actual annual income once voids, agent fees, maintenance bills and bad months are counted honestly.

What does guaranteed rent save you?

Guaranteed rent removes the three costs landlords most often underestimate: void periods, fees, and compliance risk.

Void periods disappear. Your payment arrives on the same date every month whether the property is occupied or not.

Fees disappear. No management fee, no tenant find fee, no renewal charge, no commission. The London Landlord has never sent a landlord a management fee invoice.

Compliance risk transfers. Licensing, maintenance obligations and everything the Renters Rights Act introduced becomes the provider’s responsibility, not yours. With licensing penalties now reaching £40,000, that transfer has real value.

Who is guaranteed rent worth it for?

Guaranteed rent suits landlords who depend on their rental income, live overseas, self-manage without the time to do it properly, or simply want the property off their mind. It is most valuable when a void, a non-paying tenant or a compliance failure would genuinely hurt.

It is less suitable for landlords who enjoy hands-on management, have time to handle everything themselves, and can comfortably absorb an empty month or an unexpected bill.

The verdict: is guaranteed rent worth it?

For most London landlords, yes, guaranteed rent is worth it, because the fixed payment usually compares well against real-world annual income once voids, fees and risk are priced in honestly. The landlords who conclude otherwise are usually comparing against a theoretical perfect year.

The simplest way to decide is to get a real number for your property and do the maths yourself. We come to you, view the property and make an offer. No fees, no obligation. Find out what your property could earn.