Regarded by many existing landlords as ‘fail-safe’, a Rent to Rent strategy is excellent means of getting their foot in the door for those who don’t have a large lump sum to put down on a deposit. Many investors utilize the strategy as a means of increasing their existing property portfolio. As the name suggests, Rent to Rent involves renting a property from a landlord then letting out the individual rooms, making you a nice profit in the process.
Better still; the landlord gives his or her full blessing to the scheme. That’s because Rent to Rent schemes tend to come with a long lease for the landlord (at least a year), there will be no voids and as the main tenant, you will carry out any maintenance, credit check the other tenants, and invest the deposits etc. In other words, you take on the role of a management company. It’s not surprising that this method is particularly popular with landlords of large HMOs – especially those about to retire.