Guaranteed rent (rent to rent): what it is and why it pays off for owners

"Getting paid every month even when the flat is empty" sounds too good to be true. But that's exactly what the guaranteed rent model — also known as rent to rent — offers. Let's explain how it really works, no small print.

What guaranteed rent is

A management company rents your whole flat on a long-term contract and pays you a fixed rent every month. In exchange, that company sublets the flat (usually by the room) and keeps the difference, taking on the management and the occupancy risk.

In plain terms: you sign with a solvent company, not a private tenant, and you get paid rain or shine.

What the contract looks like

It's a lease between you (the owner) and the management company, with express authorisation to sublet. It usually includes:

• A fixed, guaranteed monthly rent.
• An agreed term (typically 3–5 years).
• The company handling routine maintenance and returning the flat in good condition.

What you collect and what you don't

You collect a fixed, predictable rent, all 12 months, whether the flat is full or empty. You don't collect the theoretical maximum you'd get managing it room by room yourself, because that "extra" is precisely what pays for the company's work and risk. It's a fair trade: you swap an income ceiling for zero management and zero default risk.

The upside for you

• Guaranteed income even with empty rooms.
• Zero arrears: your counterparty is a company, not a private individual.
• Zero management: forget tenants, bills, breakdowns and cleanings.
• Property upkeep: it's looked after and handed back in good shape.
• Legal and tax simplicity: a single, clear contract.

The risks (and how they're mitigated)

No model is magic. What matters is who you sign with:

• The company's solvency: check its track record and managed portfolio.
• Hand-back condition: make sure the contract details inventory and condition.
• Controlled subletting: the company should screen tenants properly.

With a serious company, these points are covered by contract.

Which owner does it make sense for?

Guaranteed rent is a particularly good fit if you:

• Live far from the flat or have no time to manage it.
• Want stable, predictable income for your finances.
• Worry about arrears or squatting.
• Prefer peace of mind over squeezing the last euro.

In short

Guaranteed rent isn't for someone chasing the absolute maximum at the cost of managing everything. It's for the owner who values sleeping well and getting paid a fixed amount. If that's your priority, it's probably the best model out there today.

At AdastraHouse we work with this model in Madrid: we assess your flat, offer you a guaranteed rent and take care of absolutely everything. If you like, we'll tell you what rent we could guarantee for your flat.