Why Accept £1,600 Instead of £2,000?
Understanding the Real Value Behind Guaranteed Rent
Intro
“Why would I accept less?”
If you’ve advertised your 5-bed HMO at £2,000/month, and we offer you £1,600, it’s fair to ask:
It’s a valid question. But here’s the truth: that £2,000 you’re aiming for is often theoretical – not what actually lands in your bank account.
Let’s break down what you’re really earning in different scenarios – and why a guaranteed rent offer might make more sense long term.
Important: The figures below are examples only – they don’t represent a specific property or formal offer. Income always depends on the condition, location and setup of each individual HMO.
Managing the Property Yourself
Pros:
- Full control
- No agency fees
Cons:
- You handle everything: viewings, tenants, contracts, compliance, repairs
- Time-consuming and stressful
- Regular voids between tenants
- Legal responsibilities, including deposit registration
- Chasing rent and disputes
Example deductions:
– 1–2 months of voids per year → £167–£333/month average loss
– Maintenance and repairs → £80–£150/month
– Deposit scheme registration and admin
– 10+ hours of your personal time every month
Estimated net income: ~£1,400–£1,500/month
Plus the hidden cost of your time and attention.
Using a Letting/Managing Agent
Pros:
- Less day-to-day involvement
- Some support with tenant issues
Cons:
- You still pay for voids
- Agent doesn’t guarantee rent
- High management fees (10%–15%)
- Maintenance still at your cost
- Deposit scheme responsibilities often remain with you
Example deductions:
Example deductions:
– Agent fees → £200–£300/month
– Voids and cleaning between tenancies
– Repairs → £80–£150/month
– Deposit registration often left to landlord
Estimated net income: ~£1,300–£1,450/month
Some help, but not always value for money.
Working With Us – Guaranteed Rent
Pros:
- Rent paid every month, regardless of occupancy
- No letting or management fees
- We are your tenant – you deal with one professional point of contact
- No arrears or rent chasing
- No deposit admin – we handle it
- We cover small repairs up to £300 every 2 months
- No viewings, inspections or tenant management
- Full compliance, handled by us
Cons:
- Lower fixed headline rent – but more actual profit in many cases
Net income: £1,600/month – guaranteed With zero time, risk or effort.
Again – this is an example only. Actual rates depend on location, condition and other factors.
Example Yearly Comparison
| Scenario | Example Gross Income | Example Net Income | Time & Stress |
|---|---|---|---|
| Self-managed HMO | £24,000 | ~£17,400 | High |
| With Letting Agent | £24,000 | ~£16,800 | Medium |
| Guaranteed Rent (Us) | £19,200 | £19,200 | None |
The Takeaway
You’re not taking less – you’re choosing certainty over assumptions.
You’re choosing:
– Net income that reflects what you actually receive
– Zero repair admin (up to £300/2 months covered by us)
– No deposit headaches
– Your time back
– Reduced financial risk
– Peace of mind
And remember: Our offers are always tailored to the specific property – not every HMO is the same.
Want a real breakdown for your property?
Contact us today for a no-obligation review and offer.
You might be surprised how much more you can make – by doing less.
Start Earning Passive Income Today
Book a Free Consultation
Let us take the hassle out of renting. Fill out the form and discover how much your property could earn — stress-free!
Martyna
info@premium-rooms.co.uk