‘Rent to rent’ is something which has become increasingly common in recent years and is often promoted by property ‘gurus’ as a way of earning a lot of money from property without having to lay out a lot of capital.
It is where someone rents a property, not to live in themselves, but so they can rent it to tenants, or (from the point of view of the property owner) subtenants.
It can work out well and examples of successful rent to rent schemes include some offered by:
The best of these schemes work well as they have been properly thought out and those offering the schemes have invested in decent documentation.
Problems often occur when people try to do rent to rent ‘on the cheap’ without taking advice and without using proper documentation.
For example, the tenancy agreement between the property owner and the ‘rent to renter’. People often use just any old assured shorthold tenancy agreement, perhaps a free agreement downloaded from the internet, and cross out the bits they don’t like.
This can cause big problems, particularly if you are the property owner. For example:
From the ‘rent to renter’s point of view, you may find that you have failed to account properly for all the expenses involved in being a landlord. For example, the various inspections and certificates you have to pay for, the cost of keeping the property in repair and (for most rent to rent situations) the cost of HMO licensing.
You may find that you are paying out more in expenses than you get back in rent.
Property owners also need to watch out for the following:
What can you do in these situations?
To help inform landlords and property owners wanting to set up a decent rent to rent arrangement and also to assist people stuck in a problematic arrangement, we are running a special ‘rent to rent’ day on 4 November 2020.
This will feature talks from solicitor and rent to rent expert David Smith from JMW Solicitors along with talks from other solicitors from JMW. The talks will cover all aspects of rent to rent, and provide a Q&A session where you can ask your questions, plus you will have the opportunity to purchase a special ‘rent to rent’ tenancy agreement.
You can find out more about the day and the full program here.
Attendance on the day will cost you £120 (inclusive of VAT) for the event only or £420 for the event + the special ‘rent to rent’ tenancy agreement. Although readers of this post can claim a £10 discount with coupon code LLSL5FP4.
Landlord Law ‘Business Level’ members will also get an automatic 10% discount – provided you are logged in as a member when you book.
You book your place by paying online – you will find the links at the bottom of the event information page here. You can pay by card (debit or credit) or by pay pal if you prefer.
Once you have booked your place and paid the fee, you will get immediate access to our Delegates Information page. This has a bonus video from David which you can watch on ‘rent to rent’ and the problems associated with it, and a couple of other videos which might interest you.
This is going to be a very special event. I hope you will decide to join us and I look forward to welcoming you on 4 November.