{"id":2809,"date":"2018-10-08T13:32:34","date_gmt":"2018-10-08T13:32:34","guid":{"rendered":"https:\/\/www.weetas.com\/insights\/?p=2809"},"modified":"2018-12-26T13:11:33","modified_gmt":"2018-12-26T13:11:33","slug":"rent-guarantees-pros-cons","status":"publish","type":"post","link":"https:\/\/www.weetas.com\/insights\/en\/rent-guarantees-pros-cons.html","title":{"rendered":"Rent Guarantees: how they work and their pros and cons"},"content":{"rendered":"

Rent Guarantees: a way to beat property investment risks?<\/strong><\/h3>\n

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Although many people consider them to be the safest type of investments, property investments have their own risks; those risks have been amplified in the aftermath of the financial crisis that occurred and the preceding real estate bubble<\/a> back in 2008. One of the prominent risks of property investments is not finding a tenant and, therefore, not generating rental income. To help overcome this fear, realty companies came up with rent guarantees as a solution.<\/p>\n

The usage and popularity of this scheme has been soaring lately as a result of that. As a matter of fact, we, at Weetas<\/strong>, had lately designed a rent guarantee plan in which we considered the needs and interests of our prospective buyers to come up with an offer that maximizes the benefits you will get and diminish the possible disadvantages.\u00a0<\/p>\n

In this article, we help you understand the scheme better by explaining what rent guarantees<\/strong> are; also, we will demonstrate its most notable advantages and disadvantages.<\/p>\n

What are <\/strong>rent guarantees?<\/strong><\/h3>\n

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Rental guarantees are agreements between the property owners or the landlords on one hand, and a real estate brokerage company. As per such agreement, the broker guarantees the landlord a monthly rental income for the property he has been assigned for a specified period of time even in the case of not finding proper tenants for the specified property; in exchange, the landlord pays certain annual fees to the broker.<\/p>\n

So How does it work? <\/strong>Mainly speaking, brokerage companies put the units of one of their projects (e.g. residential towers) for sale and offer the prospective investors a guaranteed return on investment through the rent guarantee insurance<\/p>\n

The pros and cons of rent guarantees:<\/strong><\/h3>\n

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As any other similar scheme, rent guarantees have their pros and cons which make them suitable for some landlords and unsuitable for others. Here we enlist the most important advantages and disadvantages of rent guarantees:<\/p>\n

Pros:<\/strong><\/h3>\n