My First Rent To Rent at 18 Years Old!
Hi guys, it has been quite a while since I last discussed something related to rent-to-rent property investing, so I thought today is the day when we discuss this concept a little more. I hope you've all been doing well all this time that I have been MIA and without any further ado, let us get straight into it. For those who are here for the first time, my name is Samuel Leeds, and I am a property investor and coach. And I am back here today to discuss how exactly property rent-to-rent works.
And the property that I have chosen to use in order to explain this concept of rent to rent is not my own property. I do not own it, I do not manage it, I have absolutely nothing to do with it. In fact, this property does not belong to any of my students either. This property is actually controlled by one of my students who was with me in my free crash course on property investment. Meet Tom, who I must add is just 18 years of age. And is responsible for controlling this property. Tom here uses this property for rent to rent. So, let us see what he has to say about this entire concept.
Me: So, morning Tom. How have you been?
Tom: Not bad actually, and you
Me: well, I am excited to be doing this with you today, so very ecstatic at the moment. So, tell me, Tom, that this is not actually your property, is it? You control it as far as I know.
Tom: That is right. I recently got the control for this property here
Me: And how did you do that exactly? I mean, that must have required hefty amounts of money, am I right?
Tom: Well, not exactly. In fact, I just needed around £1000.
Me: Wait, what? So, a £1000 and boom! You have the control of this property at such a tender age? Show me how it is done, mate.
Tom: Gladly! So, if you just follow me upstairs and here into the first room, you will see it is pretty spacious. So, I did not really have to do much here in terms of the interiors, carpeting, or even the walls. All I had to do was furnish it a bit with the essential furniture items, and we were good to go. And IKEA sorted that out for me pretty quickly.
Me: Oh, Ikea, it has been a lifesaver for many property investors, has not it? Right, so two me that when you mentioned investing a total of £1000 in getting the control of this property was that including everything. As in the furniture and all other renovation costs were included in that amount, do you mean?
Tom: Precisely? Everything was within that sum of £1000. So basically, I am paying the landlord a total of £575 a month for the control of this property, and all the rest was furniture and bits of renovation tasks to get this property up and running ready to rent. And the total rent that I get is around £1500, and with all my expenses added up and deducted, I am left with around £550, with the costs being almost £950 a month. Which I think is pretty decent considering the fact that I just turned 18 about two months ago.
Me: I mean, you have done an absolutely smashing job, mate. And I understand why your mum must have been petrified but trust me when I say this, you did great for someone your age, and do you know why that is so? Because you got yourself a break clause after 6 months, and that is the least risky way to get a property for rent to rent.
Tom: Well, to be fair, I would not have known anything about property dealing itself, let alone break clauses and strategies. Was it not for one of your crash courses that I stumbled upon online a while back?
Me: I am glad I could be of help, Tom. Honestly, it is really good to see young people making something out of their lives. So, tell me, how is the renting but going for you? Did you manage to get any tenants yet?
Tom: Well, yes, actually. In fact, I already have a tenant living here at the moment and have another one moving in this weekend. And to top it off, I have three to four bookings for today and tomorrow, so it is going well if I may say so.
Me: Good going, mate. You are doing really well, you know. So, tell me, what sort of things did you look into before renting out a property like we? Are there any checkboxes that you had to tick?
Tom: Well, so basically, I just followed the crash course, right. So, it was just focusing on things such as the number of spare rooms in the property, the rents of properties in that specific area, and the sort of demand in that particular area. So basically, everything discussed on the course, I would say. So right after finishing the course, I kind of conducted a little market research in this area and managed to get this property. And then I followed your tips to avoid any problems when it came to actually rent out the rooms.
Me: Oh, the one about how there are just two problems when putting up properties for rent-to-rent. One is not able to rent out your property, and the other being renting it to the wrong people, which becomes an even bigger problem in the long run. Was it that one?
Tom: Yeah. That is the one. So, I have not had any problems with not being able to rent out the rooms, and I made sure I better the tenants before an agreement, so I honk I am doing pretty well to avoid the second one too.
And now onto the other rooms. As I walk you through the rest of the rooms, you will notice that some have been freshly painted, and that was not an expensive investment; however, it does have a high ROI since cleaner and fresh-looking rooms tend to fetch higher rents.
Me: Not bad. Not bad at all, Tom. I would say you are on the right track to becoming a successful property investor, mate. I mean, you are already making a profit of £550 on this entire property, and that is just you getting started.
Tell me if you need a license or planning permission of any sort to be able to do this? Or if you had to use any contacts and references to get yourself started.
Tom: Not really, actually. It was a pretty straightforward process, really. I mean, of course, we did have inspections where we were checked for authenticity and management, and I did not struggle with that because I put my parents down as my guarantors. And it does not even need to be parents every time. I mean, as long as you have got a few connections and a good network and anyone willing to be your guarantor, you are good to go, really.
And from there, it was just about advertising my property, really. So, I just made sure I was promoting it at the right places with the right strategy and to the right people.
Me: That's actually great stuff, Tom. Keep it up. It has been really great speaking to you and meeting you today, and I really hope you make it big one day. Just keep up the good work, mate. I can really see you making it big, you know.
And I am glad I could help you with my crash course. I really am.
Feedback on The Crash Course
Tom: Although I was pretty skeptical at first when I initially came across a video of your own YouTube regarding your free property investment crash course, I decided to go on with it anyway because since it was free, what was there to lose, right? And I am so glad that I did take up your course. I mean, I would have never imagined, not even in a hundred years, that I would be able to become financially independent at such a young age and that too with so much ease. Had it not been for your guidance and crash course, Samuel, I would have never really gotten the confidence or the required knowledge to be able to have an entire property's control and use it for rent-to-rent. So, thank you so much for helping me out. It has been an enormous help and a source of constant motivation for me this entire time.
So that is all for today, folks. I hope you were able to learn something new about rent to rent and how it works and that you can use this knowledge to get yourself started on renting out properties too.
For more such videos and informative content, subscribe to my YouTube channel, or register for my free crash course on property investment and start your journey towards a brighter future today.
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