How To Start A Rent To Rent Business: In our latest mini-documentary, we meet Ollie Whitehead. Ollie went from being broke, banned from driving, and addicted to drugs at 22, to building a £10,000 per month rent to rent business by age 24. He started with no money, but he took massive action and turned his life around.
If you want to learn exactly how to start a rent to rent business in the UK, then make sure to watch Ollie’s inspiring story until the very end. You can find the video at the top of this page or on my YouTube channel. This case study contains incredible insights into the rent to rent strategy that every property investor could benefit from. I highly recommend that you don’t skip this one!
If you are starting out in property, but don’t have much money, the rent to rent method can be a great option. It allows you to rent a property from a landlord, and then either offer it as serviced accommodation (rent to serviced accommodation) or rent it out by the room (rent to HMO).
In this article, I will explain how to start a rent to rent business as a beginner. By the end of this blog post, you will understand the basics of the rent to rent strategy and be able to decide if it is right for you.
I want to help people find ways to get into property when they have little or no money. Rent to rent is one such solution, but not enough people know about it yet, outside the property community. I am on a mission to inform more people about how rent to rent works. However, I need your help to do it! Please will you consider sharing this article on social media? Together, we can help more people take their first steps into the world of property!
1. How To Start A Rent To Rent Business: Researching The Area!
When picking an area, you want to know that there is consumer demand. In the case of rent to serviced accommodation, this means finding areas near hotels. Contact those hotels and work out if they are fully booked on a regular basis. If they are, there is likely a demand for serviced accommodation in the area.
In the case of the rent to HMO strategy, you will need to research rental demand for rooms in the area. Look at sites such as Spareroom where prospective tenants post “room wanted” adverts. Look at the number of those posts and how much tenants are willing to pay on average in the area.
2. How To Start A Rent To Rent Business: Book A Viewing!
Once you have established a general area to search for property in, you will need to look for a property to rent. If you are speaking to an agent, don’t ask if they offer rent to rent deals, this will only confuse them. Instead, ask if they do corporate lets. This is something they are likely to be more familiar with.
If you are contacting landlords directly, ask if they would be interested in a long-term guaranteed rent. This approach will allow you to book a viewing, without misleading anyone into thinking you are going to live in the property yourself.
3. How To Start A Rent To Rent Business: Negotiating A Deal!
If a landlord is open to a deal, you will need to research the specific property. Find out how close the property itself is to the local hotels. Look at Airbnb data to establish the rates charged and occupancy for similar offerings near the property.
Based on your research, you can then calculate the amount you can offer the landlord. Emphasise the benefits to the landlord of a long-term contract with no void periods. Explain that you will also handle day-to-day maintenance. If possible, negotiate a no deposit deal, with a rent-free period for you to set up the property. Congratulations, you have just started a rent to rent business!
How To Start A Rent To Rent Business: Get Training!
Now you know how to start a rent to rent business, it’s time to get some property training! Join me at my next introductory online training event!
We have different online trainings throughout the year, each teaching different things. Here is a sample of what you could learn on one of our online introductory webinars:
-
The SECRETS to becoming a successful property investor
Get immediate and actionable insights to accelerate your property investment journey.
-
How to LEVERAGE other people's money to get started
Begin to understand the strategies to use to reduce the barriers to getting started.
-
How to FIND fantastic property opportunities
Understand where property professionals source the best deals.
-
How to RECYCLE your money again and again
Don't just do it once, repeat the process to build your property portfolio.
Property investing is not just for the rich! Learn the strategies that thousands of people have used to not only start investing, but become financially free! Tickets are free, so book your property training webinar now. If you are ready to take action, I hope to see you very soon!
