What Is The Rent-to-Rent Method?: What is rent to rent, and how can you be successful starting from scratch in a rent to rent business? In a recent video, I share the seven steps to being successful in the rent to rent business. However, I also talk about some of the problems, dangers, and pitfalls of rent to rent so that you don't lose money.
I highly recommend watching the full video above until the end to understand the exact 7 steps you need to take to get started in rent-to-rent! In this article, I will summarise these 7 steps and answer the question: what is the rent-to-rent method?
What Is The Rent-To-Rent Method? Step 1 – Strategy
Firstly, what is rent to rent? Rent to rent is very simply in the name; it's when you rent a property with the agreement to rent it out for a higher amount. This could be by renting an entire property out from a landlord and then renting the property to tenants by the room. This is known as rent-to-HMO.
On the other hand, you could rent a property out on sites like Booking.com and Airbnb as serviced accommodation. This is known as rent-to-serviced accommodation (rent-to-SA). You will need to pick an area that is in high demand. You will also need to ensure that the area and type of property commands good nightly rates, compared to the amount you will pay the landlord and other costs (such as cleaning, utilities and internet).
What Is The Rent-To-Rent Method? Step 2 – Compile A List
Now you need to compile a list of potential properties. Go on Rightmove, go on SpareRoom, find existing HMOs and apartments. Look for letting agents with properties where you think this could work.
Work out your general occupancy rates and identify a list of properties and agents to call to pitch and propose this as a strategy to. So, step two is to get a list and create a spreadsheet.
What Is The Rent-To-Rent Method? Step 3 – Contact And Pitch
Arguably, the hardest step is to phone the agents and landlords and present your offering. People who have bad experiences with this usually say it wrong. If you call and say, “Do you do rent to rent?” you'll confuse them, and when you confuse them, you lose them!
You need to sell the concept to the landlord and agents. Tell them, “I'm going to rent your properties on a long-term lease. We'll start with one and see how it goes. This is what's in it for you and the landlord.”
Always put yourself in the shoes of the other person when negotiating in business and explain why your offer is beneficial for them.
What Is The Rent-To-Rent Method? Step 4 – Meet The Landlords
Once you've spoken to some landlords and agents who are open to the idea, step four is to meet them and view the properties. Go and see if the properties are suitable, really do your market research, and put forward your offer to the landlord and agent.
This is the scary part because if you're offering to rent a property, you need to be confident that you can rent it out for a considerably higher amount.
Once the agent or landlord accepts your offer and says yes, you can rent it.
What Is The Rent-To-Rent Method? Step 5 – Check Contracts
Step five is getting your contracts right. Make sure your contracts include break clauses so that if you're struggling for any reason, you can exit the contract. Have a three-month or six-month break clause.
Ensure the contract is clear, and both you and the landlord understand it. Contracts are crucial because, in rent to rent, the devil is in the details!
What Is The Rent-To-Rent Method? Step 6 – Marketing
Step six is to market the property. If you agree to rent a property from the first of the next month, start marketing the property before you even get the keys!
So, if you are doing rent-to SA market the property on all online travel agencies: Airbnb, Booking.com, LateRooms, etc. If you are doing rent-to-HMO, get it on SpareRoom and Rightmove. Market it thoroughly so that as soon as you get the keys, you can start making money!
What Is The Rent-To-Rent Method? Step 7 – Systemize
Step seven is to systemize your operations. Ensure you have your management, cleaners, and everything in place.
The average rent to rent property should bring in a minimum of £500 a month. A survey with my students who attended my rent to rent training showed an average profit of £925 per month per property. It's a very lucrative strategy if done right.
Make sure your systems are in place to keep it as passive as possible. If you can get three or four properties, that could potentially replace the average salary of a person in Britain.
What Is The Rent-To-Rent Method? Learn Rent-to-Rent And Other Property Strategies!
What is the rent-to-rent method? Why not learn rent-to-rent, and other property strategies, from a property expert? Join me at my next £1 training event!
On the course, you will learn how to:
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Become a property investor using other people’s money so that you can get started straight away
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Utilise the 5 different types of raised finance so that you know exactly what to offer and when
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Find the perfect properties for the BRR strategy
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Recycle your money so that you can ‘rinse and repeat’
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Build a power team you can trust, so that you can save time and money
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And much more!
Tickets are only £1, and you can get yours here. If you are ready to take action, I hope to see you very soon!
