Free Landlord Guide
Guaranteed Rent vs Fully Managed — which earns you more?
The honest, plain-English answer — including the trade-offs most companies gloss over. Read it below, or get the PDF version emailed to you the same day.
The short answer
If you want the highest total income and can live with month-to-month variation, fully managed usually earns more over a year. If you want a fixed figure landing on the same date every month — and you're happy to trade away some of the upside for that certainty — guaranteed rent is the better fit. Neither model is "right"; they simply price risk differently. This guide walks through exactly how, so you can choose with your eyes open.
How each model works
Guaranteed rent — certainty first
We agree a fixed monthly rent with you in a contract, then we let your property as serviced accommodation ourselves. You're paid the same amount every month whether the property is fully booked, half booked, or empty — occupancy risk sits with us, not you. Full management (guests, cleaning, day-to-day upkeep coordination) is bundled in as standard, and there are no voids and no letting fees.
The honest trade-off: because we're taking on the risk of quiet months, the fixed figure has to sit below what the property would earn in a good month. Your income is protected on the downside — and capped on the upside.
Fully managed — maximum upside
Your property is listed across 30+ booking channels, priced dynamically night by night, and run end-to-end by our team. Instead of a fixed rent, you receive the actual booking revenue less a management fee — typically 15–20% of revenue in the serviced accommodation industry (our own pricing starts from 12% all-in). Strong months are yours to keep.
The honest trade-off: your income varies. A buzzing June and a quiet January will pay you very different amounts, and there's no floor under a bad month. Over the year the total is usually higher than guaranteed rent — but it arrives unevenly.
Side-by-side comparison
| Guaranteed Rent | Fully Managed (15–20% fee) | |
|---|---|---|
| Monthly income | Fixed — same figure, same date, every month | Variable — actual bookings less the fee |
| Earning ceiling | Lower — capped at the agreed rent | Higher — you keep the upside of strong months |
| Void / quiet-month risk | Ours — you're paid even when it's empty | Yours — a quiet month pays less |
| Fees | None — the margin is built into the rent | 15–20% of booking revenue (ours from 12% all-in) |
| Effort from you | None — fully hands-off | None day-to-day — you review monthly statements |
| Visibility | Simple — one line on your bank statement | Full — live dashboard, per-booking breakdown |
| Best for | Owners who value predictability above all — mortgages to cover, portfolios to plan | Owners who want the highest possible return and can absorb variation |
A worked example (illustrative)
Take a 2-bed apartment that could achieve around £100 per night at roughly 70% occupancy. That's approximately £2,130 per month in gross booking revenue (£100 × 70% × ~30.4 nights).
- Fully managed: after a typical 15% management fee, roughly £1,810 in a typical month. Over a year that's in the region of £21,700 — but unevenly: a strong summer month might pay well over £2,000, a quiet winter month well under £1,500.
- Guaranteed rent: a fixed offer would sit below the typical managed figure — in this illustration around £1,540 every month, or roughly £18,500 a year, paid in twelve identical instalments with zero voids.
- Traditional long-term let (for context): a comparable property might let for around £1,290 a month — before voids, re-letting fees and tenant wear.
So in this illustration, fully managed earns roughly £3,200 more per year — the "price" of the certainty guaranteed rent gives you. Whether that certainty is worth £3,200 is a personal decision, not a mathematical one: if a £1,400 month would cause you a mortgage headache, the fixed model is doing real work for you.
Five questions to ask yourself
- Do I have a mortgage or costs that need covering every single month? Fixed income protects you; variable income needs a buffer.
- Is my property in an area with strong year-round demand? The steadier the demand, the less you give up by choosing certainty — and the more attractive the managed upside becomes too.
- How would I feel about a £1,400 month followed by a £2,300 month? If the answer is "fine", managed likely earns you more overall.
- Do I want to see the detail? Managed owners get a live dashboard and per-booking statements; guaranteed rent is deliberately simple.
- Am I sure? You don't have to be — you can start on guaranteed rent and switch to fully managed later once you've seen the property perform.
Three mistakes to avoid when choosing
Comparing a guaranteed rent offer to the best month, not the average month. A fixed offer will always look small next to a bumper August. The fair comparison is against a full year of managed income — including January — after fees and quiet spells.
Ignoring what's included. A guaranteed rent figure usually has the running costs of hosting absorbed into it, while a managed statement shows them line by line. Make sure you're comparing what actually lands in your bank account under each model, not the headline numbers.
Signing a long fixed term before seeing the property perform. Certainty is valuable, but locking a below-market figure in for years can cost you. Ask what the review points are, how the figure is set, and what it takes to switch models — we put all three in writing before you commit.
Still weighing it up? The fastest way to a real answer is a free appraisal: we'll price both models for your specific property within 24 hours, in writing, with no obligation — so you're choosing between two real numbers instead of two theories.
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Common Questions
Guaranteed rent vs managed — FAQs.
Which pays more overall — guaranteed rent or fully managed?
Over a typical year, fully managed usually earns more in total because you keep the upside of strong months, while guaranteed rent trades some of that ceiling for a fixed payment with zero voids. The gap depends on your property and area — figures are always estimates until we complete a full appraisal.
What does the 15–20% management fee actually cover?
Listing across 30+ channels, dynamic nightly pricing, guest vetting and 24/7 communication, cleaning and linen coordination, maintenance coordination, and owner statements. You pay the fee on booking revenue actually earned — no bookings, no fee.
Can I switch between guaranteed rent and fully managed later?
Yes. Many owners start on guaranteed rent for certainty, then move to fully managed once they've seen how their property performs. We'll advise the sensible switch point at your review.
Who pays for bills, cleaning and maintenance under each model?
It's agreed in the contract before you sign. On guaranteed rent we typically take on the day-to-day running costs of hosting; on fully managed, running costs come out of booking revenue and are itemised on your statement. Structural repairs and building insurance normally stay with the owner under both models.
Is the guaranteed rent really guaranteed?
The monthly figure is fixed in a contract with Maine Property Solutions Ltd and paid whether the property is booked or empty — occupancy risk sits with us for the contract term. Like any commercial agreement it is as strong as the contract and the company behind it, which is why we put everything in writing and encourage you to take independent advice.
Before you go
Get the PDF — or get real numbers.
Grab the PDF version of this guide (emailed the same day), or skip straight to a free appraisal and we'll show you both models priced for your property within 24 hours.
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