Guaranteed rent. A fixed amount, every month, whatever happens.
Some owners do not want a variable income and a monthly statement to read. They want a number in the bank on the same date, and no involvement. For those owners we take the property on a sublet. We become your tenant, we run it as a short let, and every risk in the operation moves from you to us.
How it works
- 01
We assess the property and model what it can realistically earn over twelve months.
- 02
We offer you a fixed monthly rent set below that projection. The gap is the price of certainty and the risk we are taking on.
- 03
We sign a lease for an agreed term, with a schedule of condition and an inventory.
- 04
We fund the setup, furnishing and photography ourselves.
- 05
You receive the same transfer on the same date every month for the whole term, including the months the property is empty.
- 06
At the end of the term the property comes back to you in the agreed condition, furnished and improved.
We already run properties this way.
Guaranteed rent is not something we are offering to try. It is how we operate a significant part of our own portfolio today, across a guest house, a townhouse, a house and a maisonette. We have paid fixed rent through a full Maltese winter, including February, when short let revenue across the island runs at roughly a quarter of its August level.
That matters, because a fixed rent is only worth as much as the person paying it. Anyone can offer you a number for the summer. The question is what happens in January. We have answered it, repeatedly, with our own money.
What moves to us
| Management | Guaranteed rent | |
|---|---|---|
| Monthly income | Variable, follows performance | Fixed, same every month |
| Upside in a strong year | Yours | Ours |
| Empty months | Your risk | Our risk |
| Setup and furnishing | Funded by you | Funded by us |
| Running costs | Recharged to you | Ours |
| Guest damage | Claimed and managed for you | Entirely ours |
| Owner involvement | Approve budgets, read statement | None |
| Own use of property | Yes, block dates freely | No, leased for the term |
| Term | Rolling with notice | Fixed term |
| Best for | Owners who want maximum return | Owners who want certainty |
What we need for this to work
We can only guarantee rent on a property that is strong enough to carry the risk. That usually means a high value property in a strong location with a real standout feature, and a term long enough for us to recover the setup we fund. We will not offer a guaranteed rent on a property we would not manage on percentage.
The honest version
Over a strong twelve months, full management will almost always pay you more than guaranteed rent. Guaranteed rent pays you less on average, and pays you the same in a bad year as in a good one. If you value the certainty more than the difference, this is the better deal for you. If you do not, take the percentage model. We will tell you which one we think fits your property.
Ask us what we would guarantee on your property.
Send the address and a few photos. We will model it and come back with a number.