Guaranteed rent has gone from niche to mainstream in the last 24 months. We field calls about it every week. From landlords who've heard the term and want to understand what it actually means.
This is the complete 2026 guide. What guaranteed rent is. How it works in real life. Who it suits (and who it doesn't). And the questions to ask before signing anything.
What guaranteed rent actually is
A guaranteed rent scheme is a contract where a property management company. Like Taj Cribs. Leases your property directly. You receive a fixed monthly payment for the full term of the lease. You don't deal with tenants, voids, maintenance, or bookings.
The legal structure is a corporate let. We are the tenant. The company holds the lease, sub-lets the property as a short-let or serviced apartment, and pays you a guaranteed monthly figure regardless of how the property is performing.
It's sometimes called rent-to-rent or rent-to-SA. It's been around for decades; it's only the professionalisation of the model that's new.
How it works in practice
Our process is straightforward. We assess your property, agree a guaranteed monthly figure, and sign a corporate lease for between 1 and 5 years.
From the day the lease starts, you receive the same payment on the same date every month. We take responsibility for utilities, council tax, internet, cleaning, routine maintenance and consumables. You retain ownership, the mortgage, and building insurance.
- Lease term: typically 1, 3 or 5 years (you choose)
- Payment: full market rental value, paid on the same date monthly
- Maintenance: we cover routine items; you cover capital items
- Property condition: returned to you at lease end in agreed condition
- Notice: structured so neither side can exit on a whim
Who guaranteed rent suits
In our experience managing properties across Central London, guaranteed rent works best for a specific kind of owner.
If you want certainty above all else. Same payment, same date, no surprises. Guaranteed rent is built for you. If you live abroad or simply can't make property your second job, it's the cleanest option on the market.
Block and portfolio owners benefit most. We already manage a full 14-unit block in Marylebone under our scheme; the maths gets stronger the more units you have.
Five myths worth debunking
Myth 1: It's not legal
False. Corporate lets are a long-standing structure recognised by HMRC, mortgage lenders and the courts. Done properly, with the right paperwork, they are completely legitimate.
Myth 2: You'll be paid below market
False (when done by a serious operator). We pay the full market rental value. Our margin comes from optimising short-let upside, not from undercutting your rent. If a provider offers significantly less than market AST rent, walk away.
Myth 3: You lose control of your property
False. You retain full ownership. The lease specifies maximum guest numbers, no-party policy, no commercial use, and standards of upkeep. You can inspect with reasonable notice.
Myth 4: It will affect your mortgage
It can, which is why you must check. Many BTL mortgages require permission for any arrangement that isn't a standard AST. We provide template wording for the conversation with your lender.
Myth 5: Guests will trash your property
False. Our Quality Officer inspects the property after every checkout. Every single time, no exceptions. Damage above platform deposits is covered by a reserve fund. You pay nothing.
What to look for in a guaranteed rent provider
Not all providers are equal. Three things separate the good from the questionable.
- 01Length of operating history. Look for providers with at least 3 years of consistent operation in your borough. And ask for references.
- 02Quality of the contract. The lease should specify payment dates, condition standards, dispute resolution and clear exit terms. If it doesn't, redraft.
- 03Operational quality on the ground. Ask how they handle guest turnover. Cheap providers outsource to gig-economy cleaners; the best run housekeeping in-house. Our Quality Officer standard is the operational reason our reviews stay 5-star.
How to get started
Three steps. Free valuation, fixed offer, contract.
Step one: we visit your property (or review photos and details remotely for overseas owners) and confirm a guaranteed monthly figure within 24 hours. Step two: if you accept, we send a lease draft for you and your solicitor to review. Step three: we sign, onboard the property in less than a week, and start paying.
Have a question about your property? Speak to the Taj Cribs team. We manage properties across the whole of Central London and offer free valuations with no obligation.
