Investing in real estate, and more specifically in rental properties, can be one of the most lucrative and safe investments people can make

When Investing in a property with R.O.I Guarantee make sure the following terms and conditions are clearly stated in your rental contract:

Investment Cost

 This is the cost of the property ,usually excluding closing costs.

 Additional Costs

    Is there an investment immediately needed to renovate or repair the property. This should be added to the Investment Cost.

 Annual Expenses


Make sure you both agree on the Annual        expenses. Even though you have a guaranteed amount you should be hoping to make more.


Guaranteed Return Amount

Usually it is a % of the Net Profit before taxes.


Schedule of Payments

The return payment schedule should be fixed according to your needs, we suggest the fixed monthly payments of the guaranteed amount and the lump payment of extra earnings at the end of each financial year.


Length of Agreemeent

Important to know the duration of your contract to be able to know your total return.



Who is/are guaranteeing your return

Make sure the Company or Person guaranteeing your return is financially stable and has good references. 


Have an out clause before the Rental Guarantee expires

You were purchasing your property for investment purposes but now you want to live in it? Maybe you want to sell and the buyer isnt interested in the rental agreement.


Have the right to transfer your contract

If you have a buyer that is interested being able to transfer this agreement can be to your benefit.


Give the seller/property manager an incentive to earn more than the minimum Guarantee

Offering between 10-25% commission of the extra profits can be advantageous. This amount can be deducted from the lump sum at the end of the year.


Example of a Guarantee of 7% for 5 years on a 300 000$ investment

Minimum return of 105 000$ over 5 years.


15% incentive plan with seller/property manager

Return over 5 years, 150 000$ (10%) the seller/property manager will recieve

15% of 45 000$= 6 750$

and you will net an extra


38 250$(150k-105k-6,75k) total 143 250$ over 5 years. (9.5%/year)


An incentive plan will not guarantee more revenue. The above was just an example.


Negotiate an buy back amount.

Most sellers do not accept this clause or will offer much lower than the price they sold it for,it doesn't hurt to try.



Your lawyer assisting you with your closing should draw up or approve the Rental Guarantee contract.


I hope this information has been helpful and please let me know if you require any further assistance.


Mari Brenes




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