🚨 A RENTAL GUARANTEE is not what you think it is ?!

A RENTAL GUARANTEE IS NOT WHAT YOU THINK IT IS!

So many clients tell me about these amazing deals......where they have been offered 10% net rental guarantees for 5 years...

But Dale, This offer is too good to refuse and much better than your 5 and 6% yielding properties.😫

So, let's address the 🐘 elephant in the room then, shall we?

The terms "RENTAL ASSURANCE" and "RENTAL GUARANTEE" are often used by developers to attract potential buyers.

A Rental Assurance is a promise made by the developer or the management company involved in the investment to provide a certain level of rental income for a specific period.

But what if things GO WRONG and they can't afford to PAY YOU? 💥

They simply shut the non-profit, loss-making SPV LTD company down... 🤫 bad luck, hey?

You need to check how financially viable paying this rental assurance is..because if the maths don't add up or they overpromise and cannot deliver...

A Rental Guarantee on the other hand is a more formal agreement that legally binds the developer to guarantee a specific level of rental income for a set period. This guarantees greater protection to the investor......even if the property is vacant or the rental market conditions change as is under pinned by a bank or asset back guarantee with a financially stable parent company…

It's crucial to thoroughly review the contract and UNDERSTAND what you are SIGNING...

...before assuming that these assurances or guarantees are fully guaranteed. Consult a legal professional or advisor to fully explain before signing the deal.

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