…and give our landlords peace of mind
With the uncertainty in the UK economy, many landlords have expressed concerns over receiving rent for their rental properties. Many landlords have turned to schemes such as Rent 2 Rent in order to ensure a guaranteed rent every month. This scheme creates a large degree of certainty that’s previously missing from the UK rental market.
What is the Rent to Rent scheme and how does it Guarantee Rent for the landlords?
How the Rent to Rent scheme works is where you take over the management of a property from a landlord who may have moved away or might be struggling to fill the empty rooms. You bring the property back up to date with a light refurb, add your individual style and rent the rooms to working professionals. The system is perfectly legal with the landlord being informed every step of the way and guaranteed a rent, whilst the rent 2 rent’er maintains the property and gets the monthly rent paid from the end tenants. The Rent 2 Rent’er typically does not live in the property and takes care of the day to day running of the business, giving the landlord a completely hands-off experience.
The Rent 2 Rent’er is able to Guarantee the income for the landlord due to there being six or more tenants living in the property [depending on the size of the house] thus creating multiple streams of income and therefore reducing the chances of late or missed payments significantly. There is enough money in the deal for both the Rent 2 Rent’er and the landlord to earn money. The landlord receives the agreed fixed rental income for the property, whereas the Rent 2 Rent’er receives rental income from each of the individual rooms and also pays all utility bills.
The Rent 2 Rent scheme is becoming the new way of doing things and is increasingly popular with both landlords and tenants benefitting from it. For working professionals living in expensive cities, it is an ideal system. Whilst some people might consider it a risk to rent properties to small groups of strangers, a strict vetting process will avoid any management issues. After running our Rent 2 Rent business for over three year we have voids, never any late payments, the properties always run smoothly and we have never had to evict anyone. In fact they are a lot less hassle than our single lets!
Many people consider Guaranteed Rent or Rent 2 Rent to be the future of lettings!