Updated: Nov 15, 2020
What is A Rental Guarantee Program?
A rental guarantee program is a an agreement between an investor and a developer or a property management company that guarantees rental income at a fixed rate on the new investor’s property usually for the first 1-3 years after purchase.
Property management company is aiming to generate profit on the spread between the agreed guaranteed rental payments to the investor and rental income from property rental.
The Benefits of Rental Guarantee Programs for Investors
The prime benefit of a rental guarantee for investors is possibility to obtain rental income regardless of tenancy. Management company undertakes to maintain the premises and handle guest communications. The rental guarantee pays the property owner each month or each year depending on the agreement terms. When accepting a rental guarantee program an investor has to consider whether the guaranteed rental rate covers the costs of ownership, such as mortgage payment, property maintenance fees, property taxes, homeowner’s insurance and the potential cost of vacancy.
It is the responsibility of the guarantee provider to find and secure tenants for the property, leaving the work largely out of the investor’s hands. The property developer or management company often offers the rental guarantee program as part of the pre-construction sale package.
As a real estate practice and investment option, rental guarantee programs are rather popular in Cyprus, especially for highly-sought Cyprus golf resort properties. Outstanding facilities and wide-ranging services, that rival the finest hotels, ensure that Cyprus golf resort residents experience the best in recreational enjoyment and contemporary living. Rental guarantee schemes for Cyprus golf resort properties offer rather attractive return on investment and excellent property management plans.
Aphrodite Hills Rental Guarantee Program
Aphrodite Hills Golf Resort has introduced a rental guarantee program for their new luxury villa developments Aeneas and Poseidon development. The secured rental income for 3 years amounts up to 3% of the property’s purchase price.
One of the greatest advantages of the program is that your property will be managed by the in-house Aphrodite Hills Property Management company, ensuring first-class services by fully certified and well experienced team, with more than 15 years of experience in the field. The Aphrodite Hills property management company is located at the Resort, offering more than 70 tailor-made services 24/7.
Other Benefits of Aphrodite Hills Rental Guarantee Program
Free furniture, landscaping and equipment;
Resort common expenses are covered;
Property management fees are covered;
Property owners are allowed 4 weeks free personal usage per annum (or more as agreed);
The property is maintained and looked after all year round;
Rental properties are successfully promoted during high and low seasons, and guests are offered a variety of unique services and privileges at the resort.
Above all, the greatest benefit is the peace of mind that comes with the guarantee of rental income!