Guaranteed Rent Scheme - a Unique Investment Opportunity

The Guaranteed Rent Scheme (GRS) offers investors a unique opportunity to ensure:

• Rent is paid every month
• No voids during your lease
• Rents are similar or higher than the private sector rent levels.
• The majority of maintenance and repair costs are included in the GRS lease
• investors can future proof their property and investment strategy with definite cash flow every month.

We have successfully sold 100s of off market and below market value properties suitable for the GRS to investors from all over the world. We have a passion for the Guaranteed Rent Scheme as Alliance and our investors are making a positive social difference and impact as well as making a secure and long term investment.

The details of the Guaranteed Rent Scheme are:

• This is a UK Government Home Office funded scheme.
• It currently only operates in the Glasgow City Council local authority area in Scotland
• It is operated by two very well experienced and respected Private Social Housing Organisations.
• The GRS scheme contract is until 2029 and the contract will be renewed again.
• The GRS requires 60 new and additional properties every month to meet demand. What About the Rental Payments?
• No rent payment voids throughout the contract
• Rent paid is comparable to open market rent
• The lease start date and payment date is started as soon as the property refurbishment is complete.
• Rent is paid on 1st of every month
• GRS are responsible for paying all gas, electric, broadband and council tax bills and majority of all repairs. What Properties Are Required?
• There is a maximum rent level that they pay depending on the number of rooms in the property.
• They look for 1, 2, 3 and 4 bed properties.
• To ensure the property is acceptable to the GRS, Alliance Property Group will confirm this with GRS before we issue the deal to the investors.
• If the Deal Proposal we send states in a number of places “Suitable for The Guaranteed Rent Scheme” then we have checked and the GRS have verified it is suitable.
• If the Deal Proposal does not state any of the above then it is not suitable either because it is not in the Glasgow City Council boundary or the area has enough allocated properties on the GRS.

What Standard of Properties are Required?

The GRS has a very high standard of what is required, externally, internally, the EPC rating, decoration and finish and furnishings:

• Those standards are part of Alliance Property Group’s diligence on all property deals.
• The properties require to be furnished and the requirements are:
  • Lounge: Sofa, dining table and chairs, coffee table
  • Bedroom: Bed- single or double, wardrobe, chest of drawers, bed side table.
  • Kitchen: Washing Machine, Fridge Freezer, Cooker and microwave
• Typical Furniture cost are:
  • 1 bed £800
  • 2 bed £1000
  • 3 bed £1200
  • 4 Bed £1500
  • Monthly Operating Expenses are on average 2% of gross monthly rent
  • Property inspections are carried out every month by housing officer allocated to the property.

Do I Need A Letting Agent?

Scotland has the highest regulations and best procedures in place for landlords and for letting agents, making it the country that others follow to ensure the highest standard of housing quality and professionalism for companies like ourselves and letting agents. With the level of regulation and compliance required and if you are new to the UK property market then it is highly recommended that a letting agent is required.

If you buy one or multiple properties on the GRS, you are allocated a Property Manager from the Letting Agent we recommend for the GRS.

Letting Agents are vital to the process and ongoing management of the property.

What About Repairs?

• GRS will cover the cost for:
  • All tenant damage
  • On-going repairs
  • Materials up to £300-£400 for any boilers issues
• The landlord is responsible for:
  • Structural damage / external issues with the building
  • If the item in question is beyond repair
  • Renewal of yearly safety certificates

Property inspections are carried out every month by housing officer allocated to your property.

What if I want To Take The Property Back from the GRS?

• The property back from the GRS when 2 months written notice is given to the Letting Agent and the GRS.
• The GRS will return the property to you in the condition it was handed over in minus fair wear and tear.

Is there Any Catch?

No! It may seem too good to be true but hundreds of investors have bought properties through Alliance for the GRS in the last 5 years. Many are now repeat customers and is their only focused strategy. With attractive property prices in Glasgow and its metropolitan area, the excellent discounts and yields as well the UK's highest house price growth region, combined with the guaranteed payments, the benefits the scheme offers, the very strong Power Team and the high level of service that Alliance Property Group offers, you can see why the scheme is so popular.