Related Articles
VIEW ALL ARTICLES
Does an investment property with guaranteed tenant rent sound too good to be true? It's not, if you make carefully considered choices with your property investment.
Does an investment property with guaranteed tenant rent sound too good to be true? It’s not, if you make carefully considered choices with your property investment. Read on to find out how you can get an investment property with a rental guarantee so that you can reap the benefits.
Guaranteed rent can provide you with a number of property management benefits as a landlord:
Even if your investment property doesn’t have a tenant, you will still earn rental income.
This stability can help you to budget your finances and make your investment property loan repayments more easily.
Many property investors rely on tenant income to help them make their loan repayments. When that income is unreliable, it naturally causes landlords concern about meeting obligations with borrowers. However, when there is guaranteed rent on an investment property, it lowers the exposure to tenant vacancy periods and lessens their negative impact on investment property loan repayments.
Guaranteed rent can minimise the financial impact of any initial vacancy period on your investment property. You can earn rental income even when your property is vacant, boosting your ROI.
A rental guarantee can remove the uncertainty of buying a potentially lucrative investment property interstate where you may be unsure of the tenant demand. You can rest assured that your property will be earning income even if it’s vacant.
Guaranteed rent can also help you to avoid a lot of property management hassles as a landlord:
Vacant properties don’t earn income unless they have guaranteed rent. The longer they remain vacant, the bigger the negative impact, and the higher the investment stress levels can be.
If an unreliable rental income causes you to miss repayments on your investment property, this can have a negative impact on your credit rating and therefore your ability to borrow in future may be limited.
When your rental income isn’t guaranteed, your income will fluctuate, making it harder to budget and plan your finances (including any loan repayments).
Vacant properties without guaranteed rent have a reduced income-earning potential and therefore a potentially lower ROI.
If you invest in properties without guaranteed rent, you would be wiser to invest locally where you know the tenant demand. This may prevent you from investing in more lucrative property opportunities interstate.
Vacant properties without guaranteed rent have a reduced income-earning potential.
The ability of a rental property to generate tenant income should be a primary consideration for any landlord before making the decision to buy. Any investment property that doesn’t come with a rental guarantee has increased investment risk. A rental guarantee helps you to reduce your investment risk and makes it more attractive as a result.
At DPN, we provide our property investors with guaranteed rent. When you buy or build a property through us, we provide you with a guarantee that if your property is unrented 6 weeks after handover, then you will receive 92% of the base rental estimate from week 7 onwards until it is tenanted for up to 2 years.
We can make this guarantee with confidence because our in-house research team actively monitors national property markets and our properties are strategically built in high-demand, high-growth locations.
Our rental guarantee can provide you with the peace of mind that your investment will be earning you a fixed return after week 6 regardless of market conditions. You can then use this guaranteed return to help with your investment property loan repayments or for any other purpose.
Contact us to find out more. We offer a complete end-to-end service that includes property investing, property financing and property management.
Our rental guarantee can provide you with the peace of mind that your investment will be earning you a fixed return after week 6 regardless of market conditions.
.svg)
