0% property management fees

[Moneymandan]

hi all, I keep seeing everywhere guaranteed rent schemes, now I think I know how these work as the agents simply handover the property to meet the local authorities emergency housing needs. However one think I don't understand is the zero fees policy, why would they do this management for free, someone more knowledgeable in this field could please help me understand, thanks guys

 

[tony84]

There is one in manchester, they guarantee rent but when you look at how much they guarantee its about 50% of what it would get on the open market.

 

[Talay]

You need to fully understand the Local Housing Allowance (LHA) http://lha-direct.voa.gov.uk/search.aspx and how it has changed from being the 50th to the 30th percentile https://www.gov.uk/government/publi...ng-allowances-rates-broad-rental-market-areas and how this affects the mathematics and socio economics of state funding for housing.