Updating post from Reddit.
I received a message from someone who wants to have a chat about renting my 4-bed house for 3+ years. He says he works with local NHS and contractors.
I am not going to go forward with him because I suspect one of these RTR schemes, however, what's your take? Have you experienced similar enquiries?
Yeah sounds typical for one of these rent2rent scams. I bet if you contacted the NHS they wouldn't have a clue who this person/company is.
> I suspect one of these RTR schemes
That is my first thought also. Run!
Plus, my understanding is (if you have a mortgage) you are limited to signing 6-12 month ASTs. Mortgage Lenders do not like long tenancies, as it limits the value of the property if they have to resell at auction.
Subletting will most certainly be prohibited in most mortgage contracts, you need a special mortgage to engage Rent2Renters. Plus they always make them into HMOs, so would need a HMO mortgage not a standard BTL.
Don’t touch it. See previous posts
Could also be someone looking for a place to grow their weed
Rent to rent scam
What?
It is a rent to rent scam
Scammers
Scam
If you are looking for long term stuff, look up MEARS, they rent properties to government employees etc but also immigrants, that’s the risk but they do guarantee repairs etc so maybe an option, it’s definitely not for everyone but an option if you are looking for long term
What's their website?
That is strange, we have rented for four years but it was never fixed. We only take out a year to 18 months in case we don't like it.
Often despite popular opinion, it's not in tenants' best interest for 3 plus years. 2 years, yes, but not 3. I could be wrong but that jump in rent can cause a shock after years of fixed rent.
Rent to rent or rent to SA can be a legitimate business model. Most people that I have talked to use it to get their own property journey started as there is a low barrier to entry. As the owner you will still have liability to pay the mortgage and keep insurance but the R2R people will take over everything else. They should be paying you something around what a normal tenant would pay and should have some kind of rent increase built in annually...They will change the property to a HMO or SA and make the higher income associated with those strategies....they keep the difference between what they pay you and what they earn from HMO/SA after their other costs.
There are pitfalls as the owner around the licensing and who should be getting associated licenses..People changing properties into HMOs may need to do significant work to the property first...
You will need a lot of research before doing it.
The problem is of course, you remain on the hook for the property no matter what happens, and between outright scams, the 'get rich quick' people who have watched a YouTube video or two about how R2R is a way to get their own property journey started thanks to the low barrier to entry, and the people who re-list it on Airbnb, the risks are HUGE.
The only way I'd even consider it is if a well established management company became an intermediary and basically guaranteed the rent and repairs, otherwise run a million billion miles from it.
I know plenty of people who do R2R and R2SA...generally good people with good intentions but I have relationships with those people.. I wouldn't trust anyone contacting my out the blue.
With the new renters rights bill coming in there will be no more ASTs so a three year contract would end up being meaningless anyway.
Not at all, Normal AST will still be in place but RTR strategy that has in place Company let agreement isn’t effected by the renter’s rights bill and section 21 still applies.
The council will offer a better deal to let to them for 5 years and they take care of the tenants/repairs
Standard rent to rent. BUT it’s just like a letting agency and you can get lucky and have someone who is amazing and is worth the faith. If you can ask for details and check these are accurate you could be onto a perfect hassle free opportunity.
I know people that have given their property to company lets with the right agreements in place.
I’m not really sure why most of the comments are so negative? Based on things I personally know this is a peace of mind for landlords and specially at this point in time with the new regulations applied.
If the company proposes to you a 3 years lease with 12 months break clause it’s a bargain! They will need to be 100% compliant though and have the right insurance in place. As you pay the home insurance they will need to pay the “holiday let” type of insurance. Additionally, you can refer them to pay the DBS - they will pay 2-3 weeks rent (unfundable) to the insurance and the insurance will cover you with up to 5-6 times the monthly rent in case of damages in the property. But still, they have the obligation to hand over the property in the state they received it.
Personally I believe that’s the best way with the Renter’s Rights Bill in place, as these changes are applied in normal AST and not the Company let agreements. With company lets section 21 is still applies.
Let me know if you have any questions happy to answer them.
I have a family member who does this. It’s called rent to rent. It took a while for them to get their first one but they’ve got 4 now. I speak to him about it all the time as I’d like to go into myself. If you’re not okay with doing a 3 year then you don’t have to do it with them. It should always come with a 6 month break clause. Maybe a 3 month clause could be negotiated. Just say that for your personal safety and interest you’d like to do a 3 month one. Put in the contract that you’d like to schedule many visits. It’s definitely not a scam. I see both sides to it, it’s not a scam and the person who wants to rent it has got to make sure the property is in the best condition otherwise they can’t get bookings. They won’t come to the landlord for every little thing because they need to have a good relationship. You could mention in the contract that they should cover maintenance for up to £150-£200 as that’s standard. That’s what my cousin does. Hope this helps!
Also I should add, it’s not a AST contract that you’ll be signing. There’s no rights that a normal tenant will have. You can evict FYI
Scam, 100%. Trafficking, RTR, grow house. Seriously, just no.
I've had my property on a rent to rent contract on a 5 year contract for around 1.5 years (on a 4 year contract) now and my experience has been positive. They always pay on time, and the contract stipulated a % increase every year which they've honoured.
I was initially very skeptical, but did a lot of DD on the company that wanted to rent. I've also got contractual provisions to ensure that they comply with all relevant regulation and legislation.
There were some cheeky attempts to try to get me to pay for things that weren't my problem, but nothing crazy. To me it's been less management headache than a bad private tennant, but a good private tenant would always be best.
Hi, it depends, there are some benefits of doing RTR, usually those companies guarantee the condition of the property, what you need to check, if you have a mortgage is if they allow company lets, and also make sure that the company is reliable. One of the main benefits is that when you have a company let you don't use an AST that is very pro tenant. You use a company let agreement which is regulated by commercial law. I hope it helps.
Take a 6-month deposit beforehand
Interesting take. What's the rationale? That they'll trash the property?
Ignore them, it’s illegal to do this
If its a rent-to-rent, it would be a commercial agreement and not a AST. Which would not come under the regulations you reffer.
However, id rather run away. Six months deposit wont be enough to cover the damages and legacy caused by a bad rent-to-renter.
This is not legal
Rent to rent is illegal as far as mortgages go. You can’t offer a sub lease. Nor will you find an insurer willing to offer any reasonable cover for the building. Many of these providers gloss over this.
Ultimately landlord is still responsible for all tenant issues like deposits. So if they take them and don’t protect them you will be liable if they do a runner.