What is guaranteed rental income and how can you make money from it?

Date: 05.09.2019

If you are currently in the process of choosing foreign real estate , then the issue of profitability and risks of the purchase is probably in the first place. In order to protect you and provide some guarantee, many developers have developed a guaranteed lease program. The essence of this service is the transfer of real estate under the management of the Management Company (MC) for commercial purposes. Often, such companies are part of the developer's group. After signing the contract, the MC takes real estate for subsequent lease, providing the owners with a monthly fixed income. The conditions, depending on the country and the developer, vary from 5 – 10% guaranteed payments for a contract duration of up to 10 years. This option has a number of advantages:

  • Every month you receive passive income
  • The management company takes care of all the concerns related to finding tenants, moving them in and moving them out.
  • You get rid of all the problems associated with repairing and replacing furniture/equipment/plumbing, paying utility bills and other payments
  • You don't need to delve into the laws of another country.
  • You can relax in your own apartment

Especially for you, the foreign real estate agency Deniz Estate has made a selection of real estate with a guaranteed income from reliable developers in popular countries.

Türkiye

  • Apartments in Mahmutlar (Alanya)

The complex is being built just 250 meters from the cleanest beaches of the Mediterranean, 300 meters from the center of the cozy and quiet area of Mahmutlar. Mahmutlar is famous for its well-kept beaches, clean air and diverse infrastructure . Price: 63,000 € Guaranteed rental income: 8% of the cost for 1 year with extension Completion of the complex: 2018 Equipment: full

  • Apartments in Mahmutlar (Alanya)

Inexpensive apartments from one of the best developers in the region – a new project in close proximity to the sea in the resort area of Alanya – Mahmutlar. The project is located in the western part of Mahmutlar, just 300 meters from the sea and a sandy landscaped beach. Price: 47,500 € Guaranteed rental income: 8% of the cost for 1 year with extension Completion of the complex: 2020. Equipment : built-in kitchen furniture, full set of plumbing

United Kingdom

  • Apartments in Blackpool

A functioning aparthotel in the centre of Blackpool with 65 rooms. Situated 350 metres from the centre right on the promenade. From September to November the town welcomes 3.5 million tourists every year. Price: 55,000 Guaranteed rental income: 10% of the cost for 10 years Completion date: 2019 Possibility of buy-back by the developer:

  1. After 5 years, 110% = 60,500
  2. After 10 years, 120% = 66,000

Equipment: complete

  • Apartments in Derby

Studio apartment located in the city center. Ideal for renting to students. All amenities and transport to any university are nearby. Price: €77,000 Guaranteed rental income: 8% of the cost for 2 years Completion date: 2019 Equipment: full

  • Apartments in Middlesbrough

Income apartments in a middle-class retirement community in Middlesbrough, UK. Middlesbrough is a large English industrial city in North Yorkshire on the south bank of the River Tees, where there is also a seaport. Price: 71,000 Guaranteed rental income: 25 years: 8% in years 1-5, 9% in years 6-10 and 10% in years 11-25. Completion of the complex: 2019 Buy-back option by the developer: after 10 years of ownership with a 15% premium, after 15 years – 25%, after 20 years – 25%. Equipment: full

Thailand (Phuket Island)

  • Apartments on Phuket Island

The complex is located in the southern part of the island, on Nai Harn Beach. Unique studio apartments with an exclusive interior design in the style of a royal palace. Price: €135,000 Guaranteed rental income: 8% of the cost for 3 years Possibility of buyback by the developer: yes, at the purchase price Completion of the complex: 2022 Complete set: full

  • Apartments on Phuket Island

The complex is located within walking distance of all necessary infrastructure. The complex has 24-hour security, a rooftop swimming pool and a terrace with sun loungers, a bar and restaurant, a wellness complex, a gym, a lobby and a reception area. One-room apartments, where in addition to a bedroom there is a bathroom, a recreation area with a living room and a kitchen. The apartments are sold with a furniture package. Price: €117,000 Guaranteed rental income: 7% of the cost for 5 years Possibility of buyback by the developer: yes, at the purchase price Completion of the complex: 2021 Equipment: full

Cyprus

  • Apartments in Larnaca

Beautiful 2 bedroom apartment located in a gated complex in Pyla. Only 5 minutes drive from the beach and 10 minutes drive from Larnaca city center. Price: 95,000 € Guaranteed rental income: 5% of the cost for 2 years with extension Completion date: 2013 Equipment: full

  • Apartments in Larnaca

New complex , located in the exclusive and prestigious area of Larnaca Marina in the city center. The project consists of eight apartments with two bedrooms and two bathrooms – all with a spacious and modern living room. There are two apartments on each floor, which provides optimal comfort for potential buyers. Two apartments on the fifth floor have a private roof terrace with stunning views of the area. Each apartment has one parking space and a storage room on the ground floor. Price: 139,000€ Guaranteed rental income: 5% of the cost for 1 year with an extension Completion of the complex: 2020 Equipment: full

Georgia

  • Apartments in the ski resort of Gudauri.

New Gudauri is one of the most popular and picturesque winter resorts in Georgia. The beautiful mountain landscape of the Caucasus, skiing, snowboarding and paragliding are just a part of what Gudauri offers you. Price: €52,200 Guaranteed rental income: 5% of the cost for 3 years with extension Completion of the complex: 2017 Equipment: full

Poland

  • Apartments in Warsaw

The residential complex is located in the Bliska Wola district — the most dynamically developing district of Warsaw, which has quickly become a new business center, attracting investors from Poland and abroad. Price: €130,000 Guaranteed rental income: 7% per annum for 10 years Completion of the complex: 2021 Equipment: full Income from guaranteed rental does NOT depend on whether tenants live in your apartment or villa; the amount is fixed for the whole year, all risks are borne by the management company. For more detailed information, contact us in any convenient way. Our specialists will select properties based on the criteria of your request.

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Yuriy Grushetskiy Founder of Deniz Estate