Is guaranteed rent the future of letting?

Recent headlines about the Home Office encouraging landlords to house asylum seekers have sparked a lot of headlines and conversation — and rightly so. Through Serco, one of the Government’s housing contractors, landlords are being offered five-year leases with guaranteed rent and full management taken off their hands. On the face of it, this might sound appealing, particularly in a climate where margins are tight and certainty is hard to come by. 

But let’s be honest, and I am sure many of you will feel the same, it’s a bit rich. After years of stripping away landlord incentives through tax changes, stricter legislation, and now the removal of Section 21 on the horizon, the Government is now turning to the very same group it has made life harder for, asking for help to ease the housing and migrant crisis. Confidence in the sector has taken a real hit, so I don’t think landlords are going to be running to jump on board. 

That said, this story does open the door to a broader and more valuable conversation I have been having for some time, and that is the role long-term leasing models and guaranteed rent schemes could play in the future of the private rental sector. 

For landlords who are increasingly worn down by rent arrears, regulatory red tape, compliance pressures and the risk of lengthy possession battles, leasing a property on a two to five-year agreement to a reputable provider can be a game changer. No voids, no chasing rent, no tenant management, and in some cases, no maintenance worries either. In a world where the rental landscape is shifting rapidly, that kind of stability can be a huge relief. 

But let’s be clear: not all guaranteed rent schemes are created equal. 

I like to get under the bonnet with these things, and I understand why some landlords are cynical. There have been horror stories, I’ve seen them first-hand, and I’ve covered some in my Rent to Rent Gone Wrong video on YouTube. Over the years, I’ve also exposed a number of unscrupulous guaranteed rent and rent-to-rent providers on Channel 5’s Nightmare Tenants, Slum Landlords, helping to inform and educate the public about rogue operators. But I’ve also seen the flipside. When done properly, and with the right partner, guaranteed rent schemes can deliver secure, consistent income and play a genuine role in housing people who need it most. 

Companies like Elliot Leigh and Northwood have been doing this well for years. They take properties from landlords on multi-year leases, guarantee the rent, and take care of everything from tenant placement to maintenance. All the while, they ensure full compliance with regulations, which is especially important in today’s climate. The key difference is they are transparent, accountable, and have a track record that speaks for itself. 

The due diligence still matters, hugely. Landlords need to check who they are partnering with. Ask to see proof of rent guarantees, clarify who is responsible for what, and understand the conditions of the lease, especially around end of tenancy repairs and property standards. If something seems too good to be true, it probably is. That is why I also made Guaranteed Rent Done Correctly, to help landlords separate the good schemes from the risky ones. 

Now, let’s talk timing. 

The Renters’ Rights Bill entered the House of Lords Committee Stage on 22 April 2025, which means it is undergoing line by line scrutiny. There is a big focus in the Lords on trying to strike a balance between protecting tenants and keeping the rental market functioning. A lot of agents and landlords are rightly worried about unintended consequences. With Section 21 going, more regulation on the horizon, and tenant rights expanding, the reality is that managing a rental property is going to get more complex. 

And that is where guaranteed rent schemes could offer real value, not just to landlords who want a break from active management, but to those who are starting to question whether they even want to stay in the sector under the new rules. It’s a way of staying in the game without getting bogged down in the day-to-day or the legal minefield. 

Of course, this model is not for everyone. Some landlords value full control and want to remain hands on, and that’s fine. But for others, especially those with harder-to-let properties, HMOs, or homes outside premium markets, the idea of a long-term lease with a reliable provider might offer more freedom, more security, and less stress. 

So yes, the Government’s timing might raise eyebrows. But if you can look past the politics and focus on your business, this moment might just shine a light on a long-underused strategy that could offer real stability in a sector full of uncertainty. 

If you're considering it, my advice is simple: 

• Take your time and thoroughly research the company you're planning to work with 

• Go through their terms of business in detail 

• Check their company accounts and trading history 

• Make sure they’re accredited and a member of a recognised redress scheme 

• Get all agreements and guarantees in writing 

• Only work with reputable, well-established companies with a strong track record 

• Speak to other landlords who have used the company — get testimonials and ask for direct feedback 

And most of all, my favourite line, treat it like any other business decision, based on facts, not emotions.