20) Rental Guarantee
Guaranteed Monthly Income
The Rental Guarantee is essentially a leaseback program from the developer - this means that after closing, the developer rents the unit back from you. The developer then subleases the unit to an actual tenant who is going to move in. This guarantees that you get paid every single month, and makes the management of the unit completely hassle free.
Rental Guarantees are generally viewed as a business agreement, not a lease agreement.
Empire81 (Truman’s property management company) will reach out to you 1-2 weeks after closing to obtain your banking details for the automatic deposit of your rental guarantee payment and answer any questions regarding your tenant’s lease.
Rental Guarantees By Truman Homes
The rental guarantee program by Truman Homes is quite complicated, here are some key details you need to know (confirm in your contract):
You have no control over the tenant placed in the unit
If the tenant damages the unit, the developer does not indemnify you and you are still responsible
The landlord is required to pay the utilities
The unit can be rented out months before your possession date
You have to pay a 2-3 month penalty if you want to get out of the rental guarantee
You can sell under the rental guarantee but you must still respect tenant rights
You may have up to 30 days vacancy at the start of the rental guarantee where you will not get paid
You likely will not qualify for the GST rebate (some clients have been able to, some haven’t)
► Read my Complete Guide to Rental Guarantees for everything you need to know
