No, it most definitely is not. Subletting is actually when you take on a lease or a tenancy agreement yourself and then let to another person on a sub-tenancy within your tenancy.
As a managing agent, the contract that we have with you is a management contract. We then place tenants on Assured Shorthold Tenancy contracts in exactly the same way as a traditional letting and management agent.
Providing you with a guaranteed rent is sometimes referred to as “Rent to Rent” and is recognised by the UK government’s Property Ombudsman, Property Redress Scheme, of which North Shores Property is a proud member.
The Property Redress Scheme’s definition:
“Guaranteed Rent, or Rent to Rent, is where an individual or company, known as the agent, rents a property from a landlord for a specified period of time during which the landlord receives a fixed, guaranteed rent from the agent. This can be attractive to landlords who want a hands-off investment with guaranteed income.
The agent then lets the property, generally on a room-by-room basis and manages the property.”
You can read all about this on the Property Redress Scheme website:
https://www.theprs.co.uk/news/how-does-guaranteed-rent-or-rent-to-rent-work
Absolutely. As the contract between us will be a management contract, this means we’re acting in the capacity of a managing agent.
The lender simply needs to be aware that we are the managing agent, and we let the property on Assured Shorthold Tenancy contracts which will be in line with all standard lenders’ terms and conditions.
We just need to be aware of any specific terms your lender may have such as if they prohibit certain types of tenants, pets etc…
Our management contract is more than sufficient to satisfy lenders’ requirements when it comes to looking after their property.
When we hand the property back to you at the end of our contract, we will ensure that the property is handed back with vacant possession unless otherwise agreed with you prior to the contract ending.
In the unlikely event that a difficult tenant requires eviction, we would manage that process until the tenant moves out. That is all part and parcel of the management service that we provide at North Shores Property.
We understand that it’s impossible to predict what life may have in store, so we will always be flexible in regard to the terms of our agreement.
If there is an emergency whereby it is absolutely necessary for the contract to be terminated early because of personal circumstances, then we would always seek to make that as easy as possible.
All that we ask is that if there are any costs incurred through no fault of ours due to returning your property, we would expect our costs to be recovered so that we do not suffer a loss. For example, if we have spent money on refurbishment that we agreed with you to add value to your property.
If there is a genuine, proven need to terminate our contract early, we will behave ethically and properly to return your property without delay.
We are providing a letting & management service but instead of taking 10% or 12% of the monthly rental amount, we are offering the service of a guaranteed rental amount that we pay as a company directly to you.
Our business works by ensuring that the property is let out for the best possible price to the best possible tenants in order to minimise the risk and headache to ourselves. We have a vested interest in ensuring that our portfolio is managed to the highest standard.
As our contract with you will clearly state, our business will guarantee your rent payments even in the event that the property is empty.
Tel: (0191) 6666 020
Email: info@northshoresproperty.com
Registered Office: 19 Main St, Ponteland, Newcastle upon Tyne, NE20 9NH
