Landlords

Company Lets

Rent To Tent Guarranteed

Rent-to-Rent Guaranteed for a company let is a property investment strategy where a landlord leases their property to a company or an individual (the “rent-to-renter”) who then sublets it to tenants. The key feature is that the landlord receives a fixed, guaranteed rent regardless of whether the subletters pay rent or if the property is vacant.

How It Works:

1. Agreement – The landlord signs a contract with the rent-to-rent company (or individual) for a fixed period (e.g., 3-5 years).
2. Guaranteed Rent – The rent-to-rent company guarantees to pay the landlord a set monthly rent.
3. Subletting & Management – The rent-to-rent company then rents the property out to tenants (often at a higher price), manages the tenants, and maintains the property.
4. Profit Margin – The company makes a profit by charging tenants more than what they pay the landlord.

Pros forLandlords:

1.    Fixed income without void periods.

2.    No direct tenant management.

3.    Property maintenance often included.

4.    No risk if the rent-to-rent company fails to pay, landlord can decide to take their
property back without any court proceedings.

5.  No AST contract. We (grace2Grace Property) would be your tenant.

6.    No setup fee.

Cons for Landlords:

1.    Less control over who lives in the property.

Is It Legal?

Yes, but it must comply with UK rental laws, including:

• Having the landlord’s consent and mortgage lender approval 
• Following HMO (House in Multiple Occupation) licensing rules if subletting to multiple tenants
• Clear, legally binding agreements