What is rental guarantee?

Rental guarantee schemes offer rent payments to buyers for a fixed period, usually 2 to 3 years from the date of possession. Sometimes, these schemes are also called lease guarantee or assured rental income.

Usually, developers offer these schemes on new properties with undesirable attributes.

Guaranteed rental schemes are very often short-lived and not a long-term investment solution.

Many developers usually in the emerging markets offer such schemes to incite the investors. As a common sense these properties have some undesirable attributes - location, pricing or build quality issues.

Developers spend a huge sum of money on marketing these schemes. Sometimes these advertisements take the shape of propaganda. From the billboard to newspaper, and from digital channels and social media are flooded with such ads.