A letting agent finds and manages tenants for a fee, and you keep the full rent and the risk of voids and arrears. A guaranteed rent provider leases the property itself and pays you a fixed rent every month, taking on those risks in return for a lower figure.
How do the two compare side by side?
| What you are comparing | Letting agent | Guaranteed rent |
|---|---|---|
| Your tenant | An individual or household on an assured tenancy | A company, on a company let |
| Monthly income | Full market rent, less agent fees, when paid | A fixed figure below market rent, paid every month |
| Empty periods | You lose the rent | You are still paid |
| Arrears | Your risk, sometimes insurable | The provider's risk |
| Fees | Usually a percentage of rent plus set-up fees | Usually none, the margin is in the rent difference |
| Control | You approve tenants and major decisions | The provider chooses and manages occupiers within the lease terms |
| Rules from 1 May 2026 | New assured periodic tenancy rules apply in England | Company lets are outside the assured tenancy regime |
When does a letting agent make more sense?
If your property lets quickly, rarely sits empty and your tenants pay reliably, a good agent will usually leave you with more money over a year. You also keep more say over who lives in your home.
When does guaranteed rent make more sense?
If you have had long voids, arrears or repeated call-outs, or you want a figure you can plan a mortgage or retirement around, the certainty can be worth more than the extra rent. It also suits landlords who live away or no longer want to be involved.
How do I work out which is better for my property?
Add up what the property actually earned over the last two or three years after voids, arrears, fees and your own time, and compare it with a written guaranteed rent offer. Our estimator gives you an indicative figure to start with. If full management suits you better, we also offer fully managed lettings.