I’m interested in Guaranteed Rent
Are you an Estate Agent/Letting Agent?
No, we are not an Estate Agent or a Letting Agent, although we do work successfully with many local agents. We rent properties via Letting agents or local landlords who want to rent their property without the stress of having to deal with tenants themselves.
We provide quality accommodation for professional people working in the Leicester area.
So how does your service work?
We are your personal Property Managers and we charge NO fees or commission.
We sign a contract with you for a minimum of 2 years. This allows us to manage your property fully. We ensure the property is suitable for letting, including refurbishing and furnishing it, and at our own cost where necessary.
We provide quality accommodation for working professionals. We source the tenants and deal with the tenancy agreements. We take care of any maintenance work required and we pay your rent to you every month (even if the tenants fail to pay).
In effect, we GUARANTEE your rent every month regardless of voids and we take away the headache of troublesome tenants. Your business becomes totally hands-off!
What kind of tenants do you take on? I’m not keen on students, they’re troublesome!
All our tenants are SINGLE, working professionals aged 21 to 60+. We do not accept couples, unemployed people or any DSS/LHA tenants. With experience we’ve found that people co-habit much more happily together when they are all of a similar status (i.e. all working)
How do you find and evaluate potential tenants?
We advertise in several ways; on online accommodation portals such as ‘Spare Room’ and ‘Easy Room Mate’, in local newspapers and with letting agents. We have also built good relationships with local companies looking to house their employees. ALL prospective tenants must provide ID, proof of current address, National Insurance number, two references and in some cases a guarantor.
All tenants typically sign a 6 month tenancy agreement. We then extend it as necessary. There may be occasions where someone needs a shorter term due to their work contract, in these cases we assess each one individually and make a decision based on their merit. However, we do prefer long term tenants as they tend to form better co-habiting relationships.
What type of properties do you look for and where?
We will consider any property in the right area that has a minimum of 4 bedrooms (3 must be double) We may accept some 3 bed properties if they have a separate reception room that can be used as a double bedroom.
We also take on houses that:
- have been inherited
- need refurbishing
- have proved difficult to let or sell
Should work be required to re-configure a property or room to bring it up to our letting standards, then we will sometimes do this at our own cost.
The property must be in an area which we deem to be ‘in demand’ for professionals/workers looking to rent good quality accommodation. Generally this is near to Leicester City centre and the outskirts or close to main highways/motorways.
So what do you charge for your service?
There is no charge or fees for our service to the landlord.
There is no catch. We simply make our money back on the difference we pay to the landlord and the rent we charge the tenants for good quality rooms.
We employ cleaners and a property manager. All communal areas (kitchens, bathrooms, hallways) are cleaned thoroughly once every two weeks. All maintenance and tenant issues are taken care of promptly. Our tenants appreciate this and don’t mind paying a little extra for the benefits.
How do you pay the rent to the landlord?
Rent is paid monthly, one month in advance, directly from our account to the landlords’ account (or to the Letting Agent if he is involved)
What if the tenant doesn’t pay?
If a tenant misses a payment or doesn’t pay the landlord is still paid the full amount. We account for voids in our budget and deal with them if they arise. This would be our problem, not the landlords.
Will there be contract between us and how does it affect my rights?
We provide a ‘Management Contract’ which has been overseen by a solicitor and legally covers all aspects of our agreement. It gives us the authority to manage your property fully on your behalf for an agreed term and protects both our rights and yours. We recommend you read the contract in full and if there’s anything you’re not happy with, we can discuss the terms to ensure a win-win situation.
How much rent will you offer me for my property?
We pay market rent.
In general, you will receive the same rent you are already getting for the property when you take off what you would normally be paying in voids / agent commission fees / Council Tax / tenant sourcing fees / maintenance issues etc.
Most landlords don’t take these payments into account and therefore are not actually getting as much rent as they think they are! So in effect you get the same amount of rent without the hassle or bother of having to manage the property or the tenants yourself
The price we agree on is the price we will pay throughout the term of our agreement. We will not renegotiate the price.
If I sign a contract with LPS Property Management how soon will I get paid?
We are your ‘tenant’ so you will be paid immediately as in any tenancy, regardless of whether the property is occupied or not.
Occasionally, we may need to negotiate a “rent free” period to enable us to refurbish the property.
How is the property maintenance handled and what will I be responsible for?
As the property owner/landlord you will be responsible financially for structural repairs or repairs to the heating and electrical systems and that Gas and Electricity safety certificates are compliant and up to date.
If any problems structural/heating/electrical problems arise, we will inform you immediately. As the property manager we will send our maintenance team, but only after agreeing a quote with you for the work required. If you prefer, you can use your own tradesman.
We will be responsible for other maintenance issues such as:
- Basic wear and tear
- Lost keys
- Replacing broken or stolen items
- Any light maintenance up to and including £100.00
What if tenants cause damage to the property?
Any damage caused by the residents (e.g. a broken window) will be our responsibility.
We will put right the damage at our own cost.
What do you install in the property?
If the property isn’t already furnished, we will furnish it at our own cost to a high standard. We will supply new beds, wardrobes, chest of drawers etc for each bedroom. We will ensure that the bathroom is suitably furnished with a shower and the kitchen is stocked with all utilities required including fridge/freezer, cooker, washing machine, dining table and sometimes install flat screen TV’s in communal rooms.
We always adhere to current safety guidelines and will install a hard wired smoke alarm system. We ensure safety notices are present for all tenants to see.
Do you pay a deposit to the Landlord?
No, as we are a proxy tenant. However we do take deposits from all tenants which are secured under the Deposit Protection Service (DPI)
What happens if LPS Property Management goes out of business?
In the unlikely case of this happening (but we appreciate the question is important!) then according to our contract the management of the property and rent payments would revert back to the Landlord (you). Any deposits held with DPI would be still available for any unpaid rent or damages.
Will there be issues with my mortgage provider when signing a Management Contract with you?
We have no security of tenure so there should not be an issue. However, we recommend that you seek authorisation from your lender before entering into any contract.
It is your responsibility to ensure you have the correct mortgage product, where applicable. We are happy to discuss this further with you.