How does ‘guaranteed rent’ or ‘rent to rent’ work?

Guaranteed rent, also known as rent to rent, is where an individual or company takes an interest in a property for a time from a landlord and guarantees to pay a fixed rent to the landlord.

The landlord gives consent to the third party, ‘the renter’, to then rent the property to other tenants. This is different from subletting because it involves commercial or corporate tenancies, management agreements and leases or guaranteed rent schemes.