I recently toured Ceri-Ann Williams rent-to-rent serviced apartment in Reading (video above) and spoke to her about how she got started. Rent-to-rent is a great way to get started in property, as it doesn't require a huge upfront investment and can generate excellent returns. If you are willing to put in the work to systematise and manage a rent-to-rent property as a business, you can replace your salary with this strategy.
If you would like to see exactly what Ceri-Ann Williams did to get her rent-to-rent property in Reading, please take the time to watch the full video above. Each person that is successful in property has unique lessons to teach. If you are willing to listen carefully you can use those lessons to start or grow your own business. In this article, I will highlight 3 lessons from Ceri-Ann’s experience that you can leverage when starting your own rent-to-rent business.
1. Start with your own landlord
If you rent a place that could work as serviced accommodation and you are willing to move, you could start by asking your own landlord if they would be open to a rent-to-rent arrangement. Ceri-Ann wanted to move across the street to a different apartment with a balcony so she asked her landlord if she could move her current apartment on to a corporate let agreement. As her landlord knew that she was a responsible tenant who always paid on time, it was easier to persuade them.
Even if you are not willing to move, your landlord could still be a good first contact. Your landlord could have other properties they would be willing to let to you for the purposes of rent-to-rent or they could know someone who does.
2. Find your rent-to-rent niche
It is a good idea to target a particular niche when renting out serviced accommodation. Contractors will want something different to holidaymakers and vice versa. Understanding who comes to a particular area and why is very important when starting out in rent-to-rent. As you grow, you can become even more targeted and build your own customer base.
In Ceri-Ann’s case she has been able to build a customer base of people who are relocating from Hong Kong. As they don’t have a reference from a UK landlord yet, they choose to book the serviced apartment on the condition Ceri-Ann will give them a reference at the end of their stay. Some of them stay up to 6 months in the apartment!
3. Save your rent-to-rent income to buy a property
While rent-to-rent is a great way to generate income, it is still a business that requires your involvement at some level. You want to be able to build your passive income over time which means using your active income to invest. Ceri-Ann invested the money she made from her rent-to-rent deals and is now buying her own investment property.
If you would like to start investing in property yourself, why not book a ticket to the next Property Investors Crash Course. Tickets are free (£1 booking fee applies) so there is no excuse not to book.