We effectively become your tenant through a management agreement. Under this agreement we guarantee you a fixed rental income regardless of whether the property is empty or the tenant stops paying. We then let the property out on a room by room basis, taking great care to select the right kind of tenants. If they stop paying, leave suddenly, or damage the property, we take the financial hit rather than you.
Goldsmith Property is owned and managed by Ben and Zina Goldsmith. We have been landlords for over 15 years, and after working and travelling abroad for many years returned to the UK in 2013 to focus on property investment full time. Over the following couple of years we built a portfolio of 21 properties and manage properties for a number of select landlords.
Our properties are a largely HMOs (shared houses), but we also have some single let properties. This means that we have a full and thorough understanding of the requirements of letting all types of properties, and have dealt extensively with planning requirements on larger HMOs as well as space and facility standards for HMOs. We have developed a good relationships with the local Councils in the areas that we operate.
We are accredited landlords with the National Landlords Association, a member of The Property Ombudsman, and are regular attendees at property educational and networking events. This means that you can rely on us to stay up to date with all of the regulatory requirements of letting properties.
Goldsmith Property also has a team of people to help look after your properties. We have staff dedicated to property management, dealing with finding and managing our tenants. We have staff dedicated to maintaining our properties, and to dealing with the administration and finance of the business. Our tried and tested contractors are available for all of the repairs that need doing on our properties.
We like to think that what sets up apart is our commitment to providing as much value as possible to our customers – our tenants and the landlords who entrust their properties into our management.
Fundamental to this is making sure that our tenants are happy, which makes our job easier and provides less problems in your properties. We do this in a number of ways. We make sure that the accommodation we provide is very high standard, attracting better tenants who stay longer. We also provide a tenants charter, outlining the high level of service we provide for tenants, and asking them to let us know if and when we do not meet these standards.
As for landlords who we manage properties for, we only make money when we let out your properties and we can only do this when the property is in good condition, attracting better tenants and higher rents. Therefore we have the same objectives, which is to keep your property in excellent condition and attractive to tenants.
The benefits to you are quite simple, you never have another rental void period for the duration of our agreement and you do not have to deal with any tenant issues. This means that your property provides hands-free income and you can spend time focusing on other priorities knowing that we are dealing with the management of the property.
Furthermore, there are no hidden costs when you have a guaranteed rent agreement. The monthly rent we agree with you is paid in full every month – no deductions for rent arrears, commission, tenant setup fees, renewal fees or any other hidden extras. You know how much you will receive each month.
The short answer to this question is that it does not matter to you, you still get the rent we have guaranteed you. It is our responsibility to find tenants, and if we do not then we take the financial burden of not doing so.
We like to agree to between 3 and 5 year guaranteed rent agreements, but we can start with as little as 12 months in order to build trust between us. On the longer agreements we can also insert a break clause in case circumstances change.
Your rent will be paid directly into your bank monthly by standing order. No management fees are payable, so you receive all of this guaranteed rent.
As part of our guaranteed rent agreement, we take on the responsibility for all of the utility bills associated with the property. This means that we pay for council tax, gas, water, electricity, TV license and internet connection. You no longer have to deal with these utility companies !
HMOs (shared houses) are subject to higher standards of fire and safety regulations than normal rental properties. We will make sure that the property meets all of the regulatory requirements, and arrange for the Council to attend and sign off on the property if necessary.
When we come to look at your property we will identify any safety and finishing upgrades that are required to make the property as attractive to tenants as possible and meet the relevant regulations. Obviously all upgrades to the property will be discussed and agreed with you.
In some cases we have jointly paid for these upgrades with the landlord, in others we have paid for them ourselves in return for an initial ‘rent holiday’. This will be part of our discussion with you and will be included in the agreement.
In order to make our management of your property as hands-free as possible and ensure that you receive your guaranteed rent we will agree to cover minor maintenance costs in the property. This means that any repair costing £100 or less will be covered by Goldsmith Property.
More expensive maintenance and repair issues will remain your responsibility. However, we can help get quotes for the work and arrange to be there for tradesmen so that any work needed is not an inconvenience for you. Your maintenance obligations will be outlined in detail in your agreement.
We only let our properties to professional and working tenants, and we reference check all of our tenants before agreeing to take them on. We also know that by providing good quality accommodation we can pick and choose which tenants to take. Good quality accommodation attracts good quality tenants, who value the property more, look after it better and stay longer. This means that we have very few problems with our tenants not looking after properties well.
We have a regular schedule of property inspections so that we can identify if a tenant is not looking after the property well. In addition, we have cleaners attend each property every 1-2 weeks to clean the communal areas (lounge, kitchen, bathrooms and hallway), and this provides us with an early warning of any issues in the property.
Finally, in our agreement we commit to returning your property in at least as good a condition as we received it, subject to fair wear and tear. We take a full photo inventory of the property at the beginning so that the starting condition of the property is well documented.
At the end of the agreed term we will hand the property back in its original condition, allowing for fair wear and tear. Any Tenant damage is rectified by us, at our cost. We will take any damages from the tenant’s deposit. If the damages exceed the deposit then we will seek compensation direct with the tenant, if necessary through a Money Claim Online. This is done at our expense, so is not something that you need to worry about.
Since the Guaranteed Rent contract is between you (the landlord) and us (your managing agent), we are effectively the only party you would have to deal with. It is our obligation in the contract to deal with all aspects of tenancy in your property, and the actual tenants will deal directly with us for any tenancy concerns. Aside from tenancy management and property custodianship, we also cover the necessary court actions in legal costs for tenant eviction.
There are some legal obligations with renting property that we cannot do for you, and you will want to make sure you comply with personally. These include:
- Ensuring you have buildings insurance for the property and that this covers multi-letting the property
- Appropriate safety certificates (gas, electrical, EPC, fire alarms etc.)
- Consent to let/multi-let from your mortgage provider
- HMO License, where applicable (we can advise)
You will still be responsible for repairs and maintenance above £100, but we will cover smaller repairs.
As we earn directly from the market-level rent payments of actual tenant/s we find for your property, we make our profit by paying you with a minimal difference. This is in reasonable exchange for a secure and stable annual rental income without any arrears or missed periods, and the transfer of letting risks from you (the landlord) to us, which relieves you from the costly and time-consuming hassles of common letting issues. We take the financial hit when the actual tenants do not pay, when your property would need repair due to damage caused by the tenant, and when eviction is necessary.
Finding the right letting service for you depends on the level of responsibility and risk you are prepared to take. Our Guaranteed Rent service best suits landlords who want the financial stability of knowing what their rental income will be each month, with the benefits of the best property management available.
The suitability of the guaranteed rent arrangement essentially depends on the responsibilities and risks that the client is willing to take. Guaranteed Rent is suitable for landlords who seek a stable and consistent income without the hassles of dealing with tenant problems.