A Landlord’s Guide to Rent-to-Rent

Written By PropertyLoop
March 04, 2021

Rent to rent means to rent a property from a landlord and then on to a third party. There can be quite a substantial profit margin in this, when done correctly. But there’s also a lot of complications and quite a bit can go wrong! There are several different ways that this is done. If you’re a landlord who is about to list a property via an online property agent and you’d like to know more about renting to rent, then lets take a look at the various ways it is done:

1:The easiest way for a tenant to approach renting to rent is ask your landlord for a rent discount, and then get tenants in who will make them a profit when charged the full rent. All the costs and responsibilities of a tenancy are on their shoulders here.

2:Another way is to turn a family home into an HMO after getting permission from the landlord. This will generate much more money than when renting to a family. However, there are lots of regulations you’ll have to pay for when creating an HMO, which will take time and money.

3:The next way is to take over an existing HMO and increasing the profits. This can be done by adding an extra bedroom or making the place into a student house.

4:Subletting short term to tenants can also turn a tidy profit. This is best done in highly desirable locations close to city centres, cultural spots or transport links. Of course, you’ll need to keep it in tip top shape for the next sub-letters every time the previous ones leave.

All in all, rent to rent can turn a profit if done correctly -which is why many people opt to do it. The benefits include having to pay no deposit or mortgage, lower running costs than owning your own property and a fast profit.

Firstly, you need to have your landlord’s permission and a separate contract must be drawn up. Plus, everything is down to you. If you have trouble tenants who do a runner without paying the rent, you’ll be one hundred percent liable. Your landlord will also be in control of the entire scenario, which could collapse on you if you’ve not got significant cash to cover all bases. If your landlord also decides they want to sell up, they’ll probably have little concern for your business model, leaving you out of pocket and starting again from square one.

PropertyLoop is the world’s first commission free lettings platform. Our platform allows landlords to advertise their rental, reference tenants, curate an agreement, register the deposit and collect rent completely for free! There are no hidden charges, upfront fees or any catches.   

Built by experienced property investors and landlords, PropertyLoop connects renters with the owners directly. Your property is featured on all major search and comparison portals as well as advertised by PropertyLoop everywhere else on the Internet. You don’t have to worry about finding the good renters, that’s the job for the platform. Receive offers straight to your mailbox and select the renters that are right for your property. Need access to busy London property market? No problem at all! PropertyLoop is the London market specialist with years of experience and unique knowledge. Whatever your needs are, you can always speak to friendly support staff. Renting property is made as simple as one, two, three. 

Landlord RegulationsTenancy Agreement

Share article

Subscribe to our newsletter

Stay up to date with the latest marketing, sales, and service tips & news.

We are commited to yor privacy.You may unsubscribe from these communications at any time.
For more information, check out our privacy policy.