Guaranteed Rent & Rent-to-Rent FAQ

A fixed figure below your open-market rent, agreed at property assessment. That discount is the price of certainty and zero effort: the operator absorbs voids, arrears, and management. The figure depends on:

• Property type and condition: Well-maintained houses and larger properties tend to attract stronger figures
• Location: Areas with sustained housing provider placement demand support stronger figures
• The placement it suits: Which housing association, CIC, or supported living provider would place occupants there

The only way to know your exact figure is a property assessment. THS quotes a number, not a range, and the first call is diagnostic, not sales: 5 qualifying questions before any pitch. Comparing 2–3 operators is sensible; ask each one what backs their figure.

No. Your guaranteed rent is fixed for the entire lease term (typically 3–5 years). The amount cannot be reduced mid-contract due to:

• Market rent changes
• Scheme provider financial difficulties
• Property damage or wear-and-tear
• Tenant arrears (provider absorbs this)
• Changes in legislation

At lease renewal, the provider may offer a different rate (higher or lower), but you're free to renegotiate, decline renewal, or seek another provider. The contract is binding, and landlords have strong protections here.

This is a valid concern, but the risk depends heavily on the provider type:

• Housing Associations: Low risk. They're regulated by the Regulator of Social Housing and funded through government-backed streams
• Local Authorities: Low risk. Funded by council tax revenue and central government
• Established CICs: Low–medium risk. Check their government service contracts, which indicate stable funding streams
• New/smaller private operators: Higher risk. Their payments depend on their own trading cash flow, not government-backed funding

Mitigation: Your contract should include a "landlord recovery clause" specifying that if the provider fails, the property reverts to you immediately with full access. You also have a contractual claim against the provider's remaining assets. To reduce risk, prefer housing associations and local authorities. For CICs, check Charity Commission accounts and ask the provider for references from other landlords.

This varies by scheme structure:

• Council tax (residential properties): The scheme provider (as legal tenant) is responsible for paying council tax. You're not liable. This is a major advantage—you're not paying council tax on a property you're not occupying
• Business rates (if applicable): Only if the property is used for business purposes (rare in guaranteed rent). The provider would be liable

Important: Always confirm council tax responsibility in your contract. Some agreements specify that the landlord reimburses the provider for council tax if the provider pays it upfront. This is unusual, but clarify before signing.

Tax on the income: Rent under a corporate lease is taxable income at your marginal rate, the same as traditional rent. Which expenses remain deductible depends on your structure; consult an accountant to understand your specific tax position.

Positively, in most cases. Guaranteed rent improves your mortgage profile because:

• Documented income: Lenders see fixed, contractual income, not variable rental income subject to voids and arrears
• Lower risk: No tenant payment risk means higher income stability

How each lender treats corporate-lease income in affordability calculations varies; ask your broker or lender directly rather than assuming.

Key requirement: Always notify your mortgage lender of the arrangement and confirm your product permits a corporate tenancy. Failure to notify can breach your mortgage terms.

Yes, guaranteed rent is entirely legal. Critically, RRA protections do not apply to guaranteed rent schemes. Here's why:

• Guaranteed rent is a corporate lease: The scheme provider is the legal tenant. You have a B2B commercial contract with an organisation, not a B2C residential tenancy with an individual
• RRA applies only to Assured Shorthold Tenancies (ASTs): It governs the relationship between landlords and residential tenants. It does not govern commercial leases between landlords and corporate tenants
• Section 21 doesn't exist in guaranteed rent: Your lease has explicit break clauses and termination provisions (e.g., 3 months' notice + break fee). You're not dependent on Section 21
• No periodic tenancy conversion: Your lease remains fixed-term (3–5 years) with no automatic conversion to periodic terms
• Rent control doesn't apply: Your rent is contractually fixed; RRA rent control caps don't apply to your guaranteed rate

Bottom line: This is not a workaround. The corporate lease sits outside the Housing Act framework because the tenant on your lease is a company, not an individual, and that is the legal boundary Parliament drew. The RRA does apply between the scheme provider and the end occupants, and the provider manages that relationship.

The scheme provider is responsible. Here's the structure:

• You (landlord) ←→ Scheme provider: Commercial lease, contract law, no RRA
• Scheme provider ←→ End tenant: Residential tenancy (often AST or special arrangement), RRA applies

The scheme provider must ensure its arrangements with end tenants comply with RRA. This includes:

• Providing written tenancy agreements
• Protecting any deposits in an approved scheme
• Complying with damp & mould and property condition standards
• Managing possession fairly under the post-Section 21 grounds regime

As the landlord, you're not liable for any of this. You're protected from RRA complexity by contracting with the scheme provider instead of the end tenant directly.

Not your concern. The scheme provider manages the end tenant relationship. The provider's lease with the end tenant will include clauses prohibiting unauthorised sub-letting or use changes. If the end tenant breaches these terms, the provider handles enforcement or eviction.

Your lease with the provider will specify the intended use (residential, family housing, etc.). If the provider allows unauthorised use, that's the provider's breach of your lease, not the end tenant's.

In practice: Scheme providers (especially HAs and LAs) monitor this closely because their funding depends on compliance. You won't encounter sub-letting surprises.

No, typically not. The scheme provider is responsible. RRA compliance includes:

• Damp & mould: Provider must inspect regularly and remediate promptly
• Electrical Installation Condition Report (EICR): Required every 5 years; who arranges and pays is set out in the lease
• Gas safety: Annual certificate required; arrangement responsibility set out in the lease

Exception: Your contract may specify that you're responsible for structural/major repairs (roof, foundation, walls), which is separate from RRA compliance. Clarify what "major repairs" means in your contract.

Insurance angle: You should maintain landlord's buildings insurance to cover structural damage. The provider's insurance covers their tenancy setup, not the building structure.

No, not directly. The end tenant has a relationship with the scheme provider, not with you. If the end tenant has a complaint (damp, repairs, harassment, etc.), they must pursue the scheme provider or the provider's regulator.

Indirect liability (rare): In theory, if you breach your lease with the provider (e.g., you own the building but refuse to allow the provider access to conduct repairs), the provider could sue you. But this is a landlord-provider dispute, not you vs. the end tenant.

Regulator angle: If the scheme provider is a housing association, they're regulated by the Regulator of Social Housing. The end tenant can complain to the regulator. But again, you're not directly involved.

Bottom line: Your legal risk is extremely low. You're one step removed from tenant issues.

No, not if you choose the full corporate lease. Total Housing Solutions offers three structures:

• Silver (DIY): Vetted housing provider introduction and contract framework; you manage the ongoing lease relationship
• Gold (Done With You): THS sources and vets the provider and manages the landlord–provider relationship, with monthly reporting to you
• Platinum (Done For You): THS takes the corporate lease directly. Zero voids, zero management, zero calls to you. No fees: THS earns on the sublease margin

Under Platinum, you'll receive:

• A fixed monthly rent payment
• An annual statement and property inspection report
• Occasional communication (major repairs, lease renewal discussions)

That's it. Zero calls, zero maintenance decisions, zero contact with occupants, for the full 3 to 5 year term.

Yes, but through the scheme provider. You retain ownership, so you have the right to inspect your property. However, the end tenant's rights are protected:

• Notice required: You must give 24–48 hours' notice (standard tenancy law)
• Reasonable purpose: Inspections for maintenance, major repairs, or rare issues. Not for harassment
• Coordinate through provider: Don't contact the end tenant directly. Go through the scheme provider, who will arrange access
• Frequency: Typically annual inspection is standard. Limit requests to 1–2 per year

In practice: Most scheme providers conduct annual inspections on your behalf and provide you with a report. This is usually sufficient.

You'll have three options at lease expiry (typically year 3–5):

• Renew with the same provider: If both parties want to continue, agree new terms (rent rate may be different)
• Exit and re-let on AST: Your property is returned to you. You're free to use traditional lettings, another guarantor, or hold it
• Sell the property: You can sell with the lease attached (buyer takes over) or facilitate early exit and sell vacant

Timeline: The provider will contact you before expiry, giving you time to plan. Don't be caught off-guard: ask about the renewal process when you sign the lease, not at year three.

Contingency planning: If you're unsure about renewal, explore alternative providers early. Don't wait until lease expiry to seek alternatives.

Yes, you have several options:

• Sell with the lease attached: The buyer takes over your lease obligations. They'll receive the same guaranteed rent for the remainder of the term. Most leases allow this; the provider will consent (it's still their money guaranteed)
• Early exit to facilitate sale: Where the lease includes a break provision, you can trigger early exit on notice, usually with a break fee set out in the contract. Then you sell vacant
• Rent out the property on AST: If the lease is ending naturally, you're free to switch to traditional lettings. No early-exit penalty

Impact on property value: The lease attached to the property is a contractual obligation for the buyer, but it doesn't affect the building's value (the property is unchanged). A buyer might discount slightly for the lease restriction, but most residential buyers aren't bothered by a letting arrangement.

Tip: Clarify sale provisions when negotiating your lease upfront. Some providers have landlord-friendly sale clauses; others don't.

Be honest with yourself here: the 3 to 5 year lock-in is the trade for the certainty. If you're likely to need the property back soon, this may not be the right structure, and a good operator will say so before you sign. Where contracts do allow early exit:

• Notice: A notice period set out in the lease
• Break fee: As specified in the contract; review with your solicitor before signing
• Occupant rehousing: The provider works to find the occupants alternative accommodation within your notice period

Redevelopment scenario: If you're planning major redevelopment (extension, renovation), discuss this upfront with the provider. Some contracts have specific redevelopment exit clauses (lower or no break fee). You may also need to wait until the end of the current lease to avoid penalties.

Family member moving in: This is classified as "landlord's own use." Most contracts allow this with notice and reasonable break fees. It's considered a legitimate reason to exit.

Negotiation tip: If early-exit flexibility matters to you, negotiate lower break fees upfront. This is a common negotiating point.

Provider financial failure. This is the primary risk, though it's low for established providers. Mitigate by:

• Researching the provider: Check Charity Commission accounts (HAs), Companies House filings, government contract status
• Seeking landlord references: Ask the provider for contact details of 3–5 existing landlords. Talk to them about payment reliability, issue resolution, and renewal experience
• Preferring established providers: Housing associations and local authorities are lower-risk. Newer private providers are higher-risk
• Ensuring contract protections: Your lease must include a robust landlord recovery clause (property reverts to you immediately if provider fails)
• Diversifying: If you have multiple properties, don't put all of them with one provider. Spread risk

Reassurance: Housing associations and local authorities are regulated and government-funded, which is precisely why the funding mechanism matters more than the word "guaranteed". The risk is real but manageable with due diligence.

Unlikely, but your contract protects you. Here's the structure:

• Repairing covenant: Your lease specifies that the provider is responsible for maintaining the property in good condition (normal wear and tear expected)
• Dilapidations clause: At lease end, the property is returned in the condition it was let (minus normal wear). If the provider fails to do so, you can claim damages
• Provider insurance: Established providers carry property insurance covering their own liability for damage to the building

Practical risk: If a provider becomes insolvent, they may not have funds to pay for dilapidations claims. Your claim becomes an unsecured debt against their assets (rarely paid in full).

Mitigation: Inspect the property annually (via provider or independently). Document any damage. If you notice deterioration, contact the provider immediately to enforce repairs. Don't wait until lease end.

It depends entirely on what backs the payments:

• Housing association and local authority leasing schemes: Long-established and regulated, with payments backed by government funding streams
• CIC schemes: Mixed. Established CICs with secure government contracts perform well; check the contracts, not the brochure
• Small private rent-to-rent operators: The weakest part of the market. Some operators have failed to pay landlords, leading to property recovery and legal disputes, typically operators whose "guarantee" was backed by nothing but their own trading cash flow

The test to apply: ask any operator to name the specific funding source behind their payments. If they can't, the word "guaranteed" is doing all the work, and that should end the conversation.

They must pay. This is the essence of "guaranteed rent." Your contract is explicit: you receive X per month, period.

• Void between tenants: Provider pays you
• Tenant arrears: Provider pays you
• Emergency repairs costing more than expected: Provider pays you (repairs are their responsibility)
• End tenant breaks the lease: Provider pays you (they bear tenant risk)

If the provider claims they can't pay: This is a breach of contract. You can:

• Serve formal notice of breach with the cure period set out in your lease
• If not paid within the notice period, trigger the termination and recovery provisions in your lease
• Pursue the provider for damages (unpaid rent plus interest)

In practice: This is why the funding mechanism matters. A provider paid by local authority contracts, housing benefit, and government care packages does not depend on a private tenant's payslip to pay you. That, not the word "guaranteed" in a brochure, is what keeps the payment record clean.

Not directly. No "guaranteed rent insurance" exists. However, protections exist:

• Your contract recovery clause: If provider fails, your property reverts to you immediately, and you stop paying provider costs (your primary protection)
• Provider insurance: Established providers carry professional indemnity and property insurance. These don't directly pay your arrears, but they're available for landlord claims
• Landlord's own insurance: Maintain buildings insurance and landlord liability. This covers your exposure (not provider failure, but other risks)
• Provider financial strength: For HAs/LAs, their funding is backed by government or charity assets. This is better than any insurance

Bottom line: There's no "insurance payout" for guaranteed rent failure, but the legal protections (recovery clause, contract enforcement) and provider financial strength (for reputable providers) offer strong practical protection.