Rent Guarantees opendoors to increase real estate investment in Bahrain

Rent Guarantees opendoors to increase real estate investment in Bahrain

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The realestate market has become one of the largest and most important investmentmarkets ever, as it provides stability and flexibility in rental income andincrease profits.

Despite the success of this type of investment in international markets, theKingdom of Bahrain has proved well that its real estate market is the bestamong the markets not only Arab, but also global.

Bahrain has provided many facilities that will provide more investment in itsreal estate market through the imposition of laws to protect tenants andowners, in addition to the Freehold Ownership Law, which has been the mainsupporter of this type of investment in the face of market challenges andeconomic crises.

On the other hand, the Kingdom has not only made efforts to develop the properties in Bahrain market, but has begun to look for investment gaps in thereal estate market in Bahrain to find solutions that contribute significantlyto the stability of the real estate market and the development of projects.

Risks of Real Estate Investment

Although real estate investment is one of the safest types of investment, it has certain risks, which may cost a large loss of investment value. One of the most important real estate investment risks is not finding a tenant for the property, and thus not getting the desired income, which was the primary objective of buying and renting a property from the beginning.

In order to get out of the way to overcome this, real estate brokers have been working to provide guaranteed rent offers.

What are Rent Guarantees Offers?

The Rent Guarantees offers are considered as an agreement between the owner of the property on the one hand and between the real estate brokerage companies on the other. In this agreement, the real estate agent ensures that the investor obtains a monthly income from the rental of his property and for a period of time agreed upon the contract between both of them. For a low annual administrative fee, and the monthly rent is paid to the landlord whether a tenant is found for the property or not, as the landlord has leased the property to the estate agent.

The real estate brokerages offer some or all of the real estate units in one of the projects that they are marketing, and guarantee the owner that these units will generate a fixed rental income according to the specified period, after buying the unit.

Advantages and Disadvantages of Rent Guarantees

The advantage of this Rent Guarantees is that it ensures a monthly return on a fixed day, which will ease the owner of the problems of finding a tenant for his property. This Rent Guarantees also provides the landlord with the burden of managing the property and taking care of maintenance and other matters related to residential or commercial units.

But there is nothing that has no wrong, as there are advantages of Rent Guarantees, it also has disadvantages, including that the monthly return provided by the real estate agent is a low return for rental rates available, and the agent is offering prices for the sale of properties within the offers secured rent exaggerated to the extent So large ensures a special profit for him. While the management of the property is one of the advantages of the project, it is also considered a defect, since the owner of the property does not have the right to intervene in the management of the real estate unit.

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