The Guarantee Contract

Who is liable for what, and the clauses that decide your risk

Landlords who lose money on guaranteed rent rarely lose it on the rent itself. They lose it on what the contract failed to say, and on assuming a guarantee protects more than it legally can. This book explains the arrangement in law: that it is not a regulated financial product, whether you are granting a lease to the company or signing a management agreement, and why the guarantee is a promise rather than a protection. It covers the consents you may now need from your lender and freeholder, and licensing and planning. The central chapter works through the contract clause by clause, from term and break, payment and reviews to repairs, permitted use, compliance responsibility, personal guarantees and the end of the term. You will see which safety and insurance duties stay with you, how the rent is taxed, including Section 24, and a checklist to use before and during the agreement. It ends with what happens when things go wrong, from missed payments to tenants you never chose. Next in this series: “Running a Guaranteed-Rent Business”.

What’s inside

• The legal framework in plain English
• Permissions, licensing and planning
• The contracts, and what must be inside them
• Insurance, safety and your legal duties
• Tax treatment and choosing a structure
• Your compliance checklist
• Getting this wrong, what it actually costs

Educational material only, not financial, legal or tax advice. Results are not typical and are not a guarantee of income. Freedom Property Academy LTD, registered in England and Wales.