Rent-to-rent business models offer various benefits to landlords, such as guaranteed income. So, how does rent to rent property work and what are the advantages? There are different models, and some can offer attractive returns with the right approach.

Current market conditions are creating a challenging economic landscape for landlords. Instead of adding more properties to existing portfolios, due to Stamp Duty concerns, many are considering how to maximise their current portfolios. Rent to rent can offer a way to optimise your existing rental income. At RJJ Developments, we regularly take on rent-to-rent properties on behalf of landlords. Let’s explain how this model works…

BENEFITS OF RENT TO RENT FOR LANDLORDS

Put simply, the term ‘rent to rent’ is when someone rents a property from a landlord to a third party. They would rent the house from you as the landlord and find tenants to live at the property. The clear benefit here is that the landlord has a guaranteed income. You won’t need to find tenants to live in your rental property, and any gaps in rental income would be automatically covered. You also wouldn’t need to be involved in any tenancy-related matters.

OTHER RENT TO RENT PROPERTY EXAMPLES

There are a few other options that landlords could consider:

• One rent-to-rent option is where the landlord accepts discounted rent in return for guaranteed rent. This solution can be very viable if you have a property that you are struggling to rent out. Despite the discounted rate, the rental income is guaranteed.
• A further rent-to-rent property example is to take a long-term rental in a popular tourist or business area and sub-let it as short-term accommodation. The property would be listed on an accommodation site such as Airbnb.
• In some cases, a property that has been expanded could become an HMO (house in multiple occupation). As each tenant would be sub-letting, landlords would need to check any relevant legislation before agreeing to this as a rent-to-rent solution.

MAXIMISE YOUR RENTAL INCOME

To conclude, rent-to-rent property models can be a lucrative solution for landlords who are looking to maintain and optimise their current portfolio. At RJJ Developments, we can help you find profitable ways to generate income from your rental properties.

Instead of selling off your portfolio, why not consider asking us to take on your rental properties? By allowing us to take over your portfolio, we can remove all the hassle of tenancy management. With our help, you can enjoy a guaranteed rental income without any stress or gaps in income.

We also buy rental properties and carry out refurbishments to maximise the property value and optimise future rental income. We would then refinance and rent out the property or, in some cases, resell. We assess every property opportunity on its individual merits, and there are plenty of opportunities if you know where to look.

If you have any questions about this article or you would like a chat about property investing, please get in touch.

Thank you for reading our latest blog, How Does Rent to Rent Property Work?

RJJ Development