What guaranteed rent actually means
At its core, guaranteed rent is a stability model. Instead of waiting for tenant payments each month, the landlord is paid a fixed amount by an operator who becomes responsible for occupation, voids and management.
The property still belongs to the landlord. The structure simply gives the operator the responsibility of ensuring it is income-producing.
Think of it as converting your home from a variable asset to a fixed-income one — without selling it.
How it differs from a traditional AST
In a standard letting, the landlord’s income depends on:
- whether the tenant pays on time;
- whether the property stays occupied;
- whether issues are raised and resolved quickly;
- how often small, unexpected costs appear.
Under a guaranteed rent structure, these variables move to the operator. The landlord receives the same amount each month regardless of occupancy.
Where landlords often benefit
From our work with owners across several towns, the advantages tend to centre around:
- Predictability — income that lands exactly the same day each month.
- Freedom — no direct tenant management, no repairs scheduling, no rent-chasing.
- Reduced void exposure — a risk absorbed by the operator.
Where the model is not a perfect fit
Not every landlord is served well by guaranteed rent. Some prefer:
- to adjust pricing frequently to chase the top of the market;
- to manage refurbishments directly;
- to maintain close personal oversight of tenants.
The key question is whether stability and time saved outweigh the potential of achieving slightly higher returns through active management.
A quiet truth: the property still needs to be suitable
The guarantee doesn’t override fundamentals. A home still needs:
- a sensible location;
- structural and safety compliance;
- a layout suited to the operator’s use case.
For this reason, we only take on properties that genuinely suit the structure. Fewer homes — but better outcomes for both sides.
How Nectar approaches guaranteed rent
We never publish a checklist. Instead, we review each home calmly:
- What is the realistic, stable value?
- Does the surrounding area support the model?
- Can we manage it without compromising your property?
If the answers align, the arrangement tends to run quietly for years with very few interruptions.