GRR (Guaranteed Rental Return) is the promise of reliable profits for your real estate investment. The strategy is getting popular day by day especially in Cambodia. The guaranteed profits is being said by the property’s developer or management company.
Here are a short overview of GRR
- GRR plans provide investors with a minimum rental income guarantee on a property for a specified period, usually ranging from 3 to 5 years.
- This guarantee is offered by developers or property management companies, who guarantee an established monthly or yearly rental payment whether or not the property is rented out.
- The intention is to draw in investors, particularly those from overseas, by lowering their risk and offering a steady source of income from the very start.
- When purchasing an off-plan condominium or apartment while the building is still under construction, GRR programs are frequently used.
- Typically, the guaranteed rent falls between 6 and 8% of the property’s annual purchase price.
- Investors take over property management and receive the actual rental income when the GRR period expires.
All things taken into account, guaranteed rental returns have been a major factor in attracting foreign investment to Cambodia’s expanding real estate market in recent years.