Rent-to-rent

[olivebrown]

Heard about renting to rent properties on a Facebook group recently and wanted to see what people thoughts are on it. Now I'v heard how people make fortunes from this , but dig deeper and they are selling courses on how to do it also .

So you rent a property from a landlord, which you rent out individual rooms with your profit being the difference between the rent you pay the landlord and rent received. Now factoring in costs such as empty rooms, utility bills, damages and other associated costs, it seem like a very hands-on and risky strategy to me and that's not including the potential legal issues with this method of renting.

Anyone got any real world experiences of this process? It's not something i'm looking to do myself but maybe for some people it could work in dense student areas or London.

[olivebrown]

That's what I thought, as most people sell this idea as a passive income stream. From what i can see it is far from it.

[olivebrown]

That's what I thought, as most people sell this idea as a passive income stream. From what i can see it is far from it.

[olivebrown]

I believe the opportunity lies where there is landlord who currently rent HMO's or BTL, but cannot or does not want to actively manage the properties. They then get a fixed rent per month guaranteed from the rent to renter for a number of years through this scheme.

The landlord should be aware of the situation and I believe that the landlord and rent to renter would have a commercial tenancy between them. The rent to renter would then issue a license to the tenants to occupy the property. There is many legal issues you could pick from this rental method, but as mentioned above it could work for some who are willing to sail close the wind.