Guaranteed rent is simple. A property company leases your property from you, pays you a fixed amount every month, and manages everything. You don’t deal with tenants. You don’t chase arrears. You don’t get calls about broken boilers. The money arrives on the same date every month whether the property is occupied or not.

That’s the short version. Here’s everything else worth knowing before you decide if it’s right for you.

What actually happens when you sign up

The provider becomes your tenant under a formal lease — usually 3 to 5 years. They find occupants, collect rent from them, and pay you directly by standing order. Their income comes from managing the property; yours comes from the lease. The two aren’t connected, which is the whole point.

If the property sits empty for three months, you still get paid. If a tenant stops paying, that’s the provider’s problem to sort out. Your payment doesn’t change.

Getting started is quicker than most landlords expect. SmartSpace does a free valuation, sends a written offer within 24 hours, and once you’ve signed and submitted the required certificates — Gas Safety, EPC, Electrical Installation, proof of ownership, buildings insurance — payments typically start within a couple of weeks.

What’s included

With a reputable provider the rent payment is just the start. SmartSpace’s scheme covers full property management — tenant sourcing, referencing, maintenance, repairs, monthly inspections, compliance, inventory. No commission, no fees, no deductions from the agreed figure.

At the end of the lease term the property is returned in its pre-let condition, less fair wear and tear.

Guaranteed rent vs rent guarantee insurance

Worth clearing up because people confuse them.

Rent guarantee insurance is a policy you buy as a landlord. A tenant stops paying, you make a claim, wait out an excess period, get assessed, and eventually receive a payout — capped, delayed, and only for arrears. Void periods aren’t covered.

Guaranteed rent from a provider is a lease. You get paid every month regardless. No claim, no process, no gaps. It’s proactive rather than reactive.

How much will you get paid

With a good provider, the guaranteed rent is at or close to open market rate. The slight discount where it exists reflects the certainty and the full management package that comes with it — no voids, no arrears, no fees, no time spent on the property.

Most landlords who do the maths find the net annual position is similar to or better than traditional letting once you factor in void periods, agent fees, maintenance calls and the hours involved. The Renters’ Rights Act 2025 makes that calculation even clearer — more on that below.

The Renters’ Rights Act 2025 and why it matters here

Section 21 is gone. Fixed-term tenancies are gone. From May 2026, all tenancies become periodic from day one, and landlords can only regain possession on specific legal grounds. If a tenant digs in, the process is slower and less predictable than it used to be.

For landlords on standard tenancies, that’s a meaningful shift in risk. Void periods between lets become harder to control. Problem tenants take longer to deal with.

Under a guaranteed rent agreement, none of that touches you. The provider is your tenant on a commercial lease. The Renters’ Rights Act governs their relationship with the occupants — not yours with them. Your terms are fixed. Your income is fixed. Your ability to recover the property at the end of the agreed period is contractually protected.

A lot of London landlords are thinking about this right now. It’s worth thinking about before May 2026, not after.

Who it works well for

Guaranteed rent makes most sense for landlords who’ve had void periods or late payments and are tired of the uncertainty. It’s also a good fit if you manage your property from outside London, if you own more than one property and want to simplify things, or if you just don’t want the job that comes with being a landlord.

It’s less suitable if you want to choose your own tenants, manage the property yourself, or maximise short-term returns through furnished lets or Airbnb.

What to check before signing with any provider

How long have they been operating? Do they have real reviews from landlords, not just testimonials on their own website? Do they work with local councils, or are they subletting through Airbnb and short-let platforms? What happens at the end of the lease, and what are the conditions around getting your property back?

These questions matter more than the headline rent figure. A provider who’s been around for ten years with council relationships is a different proposition to someone who set up last year.

SmartSpace has been operating across London for over 10 years. We’re an official housing provider working directly with Croydon Council and local authorities across London. Our occupants are long-term, council-referred or professionally referenced — we don’t use Airbnb or short-let platforms.

Common questions

Is the rent really guaranteed even if the property is empty?

Yes. The provider is your tenant. Empty property is their risk to manage, not yours.

Is guaranteed rent worth it or will I earn less?

The guaranteed figure is usually at or close to market rate. When you account for voids, fees and management time, most landlords come out level or ahead. The certainty has real value.

Will my mortgage lender allow it?

Usually yes, but check first. Some buy-to-let mortgages have conditions around lease types. A good provider will give you documentation to support those conversations.

What if the provider goes out of business?

It’s a legitimate question. Track record and financial stability matter. Providers with long-standing council relationships and established portfolios carry less risk than newer operators.

Is it the same as rent to rent?

Similar structure, different standards. Rent to rent is a broad term that covers everything from professional operators to informal arrangements. Guaranteed rent from an established provider means a formal lease, clear contractual terms, and full management accountability.

How quickly can I get started with SmartSpace?

From initial valuation to first payment usually takes one to two weeks. Written offer within 24 hours of the valuation.

Ready to find out what your property could earn?

SmartSpace covers all 32 London boroughs. A free valuation costs nothing and commits you to nothing — and you’ll have a written rent offer the next day.

Book your free valuation or call 020 8686 3388.

More reading: how our guaranteed rent scheme works, areas we cover, full property management services.