Guaranteed Rent vs AST — What Landlords Trade (and Gain)
If you’re weighing guaranteed rent vs AST, you’re really deciding between certainty and potential upside. In Kent & South London, rising costs and admin push many owners toward fixed-income models with no management fees, while others still prefer AST flexibility. Here’s how to compare both paths and choose what fits your goals.
Guaranteed Rent vs AST — The Core Differences
At its heart, guaranteed rent vs AST is about income profile, fees, and risk. Guaranteed rent gives you a fixed monthly payment for a term (e.g., 12–60 months) and typically no management fee—we run tenants, inspections and minor repairs inside the agreement.
An AST gives you market rent potential, but you carry voids, arrears, and management fees (often ~8% of rent) unless you self-manage.
Quick Numbers Example
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Market rent £1,600.
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AST @ 8% fee: £128/mo fee (≈ £1,536/yr) plus risk of voids/arrears and relet costs.
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Guaranteed rent: a fixed offer (say £X/mo) with no management fee, paid by date, regardless of occupancy; we carry voids/minor repairs per the agreement.
Guaranteed Rent vs AST — Who Should Pick Which?
Use guaranteed rent vs AST logic that matches your objectives:
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Choose Guaranteed Rent if you want predictable cash-flow, you’re time-poor/overseas, or your borough’s licensing regime is heavy and you’d rather outsource.
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Choose AST if you’re optimising for upside, happy to manage volatility, and actively monitor rents, renewals and compliance.
Compliance & Licensing Reality
With guaranteed rent, we baseline licensing (selective/additional/HMO) and create a renewals diary; the landlord remains the licence holder unless agreed otherwise. With ASTs, the same duties still apply—you just manage them yourself or pay a manager to keep everything up to date.
Either way, fines and breaches are the landlord’s risk; strong documentation and a calm process protect you.
Guaranteed Rent vs AST — Hidden Costs & Hidden Saves
Comparing guaranteed rent vs AST isn’t just headline rent. On AST, factor:
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Void gaps between lets (even well-run portfolios see some).
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Relet costs (works, marketing, referencing).
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Management fees (e.g., ~8%) or your own time cost if self-managing.
Guaranteed rent removes the fee and void maths; you swap some upside for time and certainty.
Guaranteed Rent vs AST — Kent & South London Examples
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Bromley/Croydon flats: frequent leasehold admin and service charges; guaranteed rent can smooth cash-flow when juggling budgets and planned works.
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Bexley/Dartford houses: strong family demand; an AST may outperform in hot months, but guaranteed rent stabilises winter void risk.
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Canterbury student-adjacent stock: predictable demand but seasonal turns—a fixed model can remove timing risk entirely.
Decision Framework
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Goal: refinance DSCR, retire, or maximise yield?
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Time: hours per month you can devote to letting?
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Risk tolerance: are voids/arrears tolerable financially and emotionally?
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Compliance: will you keep licences, safety, and paperwork spotless?
The Hybrid Option
Some owners mix models: guaranteed rent on “admin-heavy” units, AST on simple, high-demand houses. You get the certainty where you need it and keep optionality where upside is realistic
guaranteed rent
FAQS
No. You receive a fixed monthly payment and no management fee is charged; operations (tenants, inspections, minor repairs) are included in the agreement.
Under Guaranteed Rent, we carry the void/arrears risk per the contract. Under an AST, you or your agent carry it.
Typically the landlord holds the licence. We map requirements, prepare the application and maintain the renewals diary.
We include minor repairs within thresholds. Major works are handled per the agreement and pre-approved with you.
Yes—at term end you can switch models. Some owners also mix models across units.
Sometimes. Guaranteed Rent trades some upside for certainty and time saved (and removes the typical ~8% management fee).
Usually 12–60 months. Residential head leases are typically 24–60 months.
Yes. We operate across Kent & South London and baseline local licensing and market dynamics before making an offer.
We map requirements and prepare submissions; the licence holder remains the landlord unless agreed otherwise.
Yes. Our 30-day portfolio onboarding checklist is designed for mid-tenancy takeovers; we standardise files, stabilise arrears, and schedule any compliance gaps in Week 1–2.
The landlord remains the licence holder in most borough schemes. We map what’s required, gather evidence and submit/track applications for you.
We document the position, serve the missing documents correctly going forward, and note the risk for future decision-making.
Yes—using the Home Office share-code route for eligible tenants. We keep a time-stamped record in the tenancy folder.
You’ll usually see movement in Weeks 2–4 as the gentle-to-firm cadence and repayment plan template roll out.
By triaging issues (urgent/7-day/30-day), using thresholds you approve, and closing every ticket with photos/invoices.
A monthly owner statement and KPI snapshot: collections %, aged arrears, open/closed maintenance, and upcoming renewals/licences.
Yes—our folder structure + spreadsheets + templates are designed for Drive/SharePoint and email.
