Most landlords compare guaranteed rent to a long-term tenant by putting two monthly numbers side by side. That misses the real question: what does a long-term tenant actually pay you over a year, once you account for empty months, late rent, turnover and the time you spend managing it?
This guide walks you through that comparison with your own numbers, shows where guaranteed rent wins and where a long-term tenant still makes more sense, and covers what to do if your unit has a tenant today.
What a long-term tenant really pays you
The rent on the lease is the best case. What actually lands in your account over a year is usually less, because of costs that don't show up in the monthly number:
- Empty months. Every gap between tenants is a month of mortgage, condo fees and taxes with no rent coming in.
- Turnover. Cleaning, painting, small repairs, photos, listing and showings every time a tenant leaves.
- Late or missed rent. Most tenants pay on time. When one doesn't, it's yours to chase.
- Wear and repairs. Day-to-day wear and the repairs that come with it are on you.
- Your time. Screening applicants, answering calls and dealing with problems are real costs, even if you never put a dollar figure on them.
- Less flexibility. If you want the unit back to sell, renovate or move family in, it can take time.
What guaranteed rent pays you
With guaranteed rent, BookedHosts becomes your tenant on a lease for a term you choose (one to three years) and pays a fixed rent on the 1st of every month, whether the unit is occupied or not. That changes the math:
- No empty months. The rent arrives every month for the full term.
- No turnover. No showings, no applications, no re-listing.
- No chasing payments. The rent arrives on the 1st.
- Often a little above market. We're selective about the units we take, and the ones we take get paid a premium over what a typical long-term tenant would pay.
- No fees or commissions. We're renting your unit, not managing it.
- Furnished and insured at our cost. Small repairs are handled, and damage is ours to fix.
- Your unit back in better shape. When the lease ends, it comes back professionally cleaned and inspected.
Compare with your own numbers
Take ten minutes with your records from the last few years and work out what your tenant actually pays you in a typical year:
- Start with your annual rent: the monthly rent times 12.
- Subtract empty months: the rent you lost between tenants, averaged per year.
- Subtract missed or late rent you never recovered.
- Subtract turnover costs: cleaning, painting, listing and repairs each time a tenant moved out, averaged per year.
- Subtract repairs caused by everyday wear during tenancies.
That's what your tenant really pays you per year, before counting your own time. Now compare it with guaranteed rent: apply in about 60 seconds, see the range your unit could qualify for, and multiply by 12. With guaranteed rent there's nothing to subtract for empty months, turnover or collections.
When guaranteed rent is the better fit
- You're tired of turnover, showings and screening.
- Your unit is empty now, or will be soon.
- You want the same rent every month to plan your mortgage and cash flow around.
- You're busy, travel often, or live outside the city.
- Your unit is bright, above grade and in good condition, in a duplex, triplex, house, small building, or a condo in a building that allows short-term rentals.
When a long-term tenant still makes more sense
Guaranteed rent isn't right for every unit, and we'd rather tell you that up front:
- You have a great tenant paying fair rent. If they pay on time and look after the place, that's worth a lot. Keep them.
- Your unit is below grade. We only take above-grade units.
- Your condo building is long-term only. Guaranteed rent is only an option in buildings that allow short-term rentals. Check your building here.
- You need the unit back within a year. Guaranteed rent runs on a fixed term of one to three years.
If your unit has a tenant today
You don't have to decide anything now. Guaranteed rent is something to plan for when the unit is next vacant. You can apply today to see what your unit could qualify for, so you know your options before your current lease comes up.
Common questions
Is the rent really paid if the unit is empty?
Yes. The rent is fixed and arrives on the 1st of every month for the whole term, occupied or not.
Do I pay any fees?
No. There are no fees and no commissions.
Who's responsible for damage?
We are. The unit is insured and professionally maintained, and damage is ours to fix, handled and documented without dragging you into it.
How long is the lease?
You choose the term up front: one to three years. You're never locked in past it.
For the full picture, read Guaranteed Rent in Toronto: How It Works. If you own a condo, start with which Toronto condo buildings qualify.
See your number
The fastest way to compare is to see your range. See what your unit could qualify for. It takes about 60 seconds, and you'll get an answer either way.
