Guaranteed rent properties are properties that have a “sub-lease” option. This means that your ‘tenant’ or contract-holder is a large Real Estate Management Company who agrees to pay a fixed rent every month for the duration of the contract. They are then responsible for finding a tenant for the property and you are paid the same amount every month, even if the property is empty.
The benefits of sub-lease properties are:
– completely eliminate vacancy risk
– receive guaranteed returns for the duration of the contract with no gap months
– 100% net payments no management fees taken from the monthly payment
– no responsibility or liability toward the tenant
– potentially eliminate property management entirely