‘Rent to rent’ where a property owner rents a property to a tenant, not for him (or her) to live in but to sublet to their own tenants, is becoming increasingly popular.
However, despite what you might hear from the ‘gurus’, this is not an easy process. Many, many landlords and property owners have lost money through inappropriate ‘rent to rent’ schemes.
One of the problem areas is often the tenancy agreement between the property owner and their tenant – the middle person or ‘rent to renter’. Some of the problems are explained by the short video clip with solicitor David Smith (recorded in May 2018).
Although ‘rent to rent’ is fairly common, proper ‘rent to rent’ tenancy agreements are not. As David says in his talk, amending AST agreements is not advisable as they are simply not appropriate.
In 2020 we ran a special training day on ‘rent to rent’ where solicitor David Smith from JMW Solicitors and two of his colleagues gave talks on the most important aspects of ‘rent to rent’. As part of that event, David drafted up a special ‘rent to rent’ tenancy agreement which could be used in most situations.
This agreement is now available as a stand-alone product.
It is particularly important to have a proper agreement if you are the property owner – so if you are presented with a form by the ‘rent to renter’ you should either refuse to sign anything until it is checked by your solicitor or insist on a properly drafted agreement such as ours being used.
The Landlord Law agreement is ‘word’ format and once payment has been made can be downloaded from a special page on this site.
The download page also has some notes from David on using the agreement and the main areas that need adapting are highlighted yellow. If you require further help, you can purchase telephone advice from David via a link on the download page.
In view of the problems that can arise with ‘rent to rent’ we strongly advise that you purchase the agreement together with the training – you will find a link to allow you to do this, at a special discount price, from the basket and checkout pages, after clicking the buy button below.
The cost of the agreement purchased alone is is £390 (ie £325 + VAT). To get it you need to