What is the Rent-to-Rent method?
An EASY 7 step guide!

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 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?

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).

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.

Step 3: Contact & 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.

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.

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!

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!

Step 6: 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.

Learn the Rent-to-Rent Strategy

I Offer Highly Practical Training Programs In A "Done With You" Environment

This means I provide hands-on support and guidance to my students. My approach is completely transparent and I bring boundless energy and enthusiasm to every training session…even finding live property deals during the programmes.

I strongly believes that everyone deserves the opportunity to understand property investment and that anyone can achieve financial freedom by applying the knowledge I provide.

Why not join me at the next Rent-to-Rent Crash Course to find out more about this amazing property investment strategy - tickets just £1

At this intensive one day programme, you will learn: