Rent To Rent
Otherwise know as management agreements
Selling your property may not be the right thing for you or your simply looking for a smarter pay to manage your property. Rent to rent can unlock genuine passive income.
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Selling may not be right for you!
Selling your investment property may not actually be the right thing for you, but your tired of the daily management of your property or properties. Your tried of managing tenants, dealing with issues and just want a way that your asset can actually provide you with that passive income everyone keeps talking about.
Well your in luck, we do Management Agreements or Rent to Rent agreements as some people would like to call them.
Sounds great but I have some questions
What are Management Agreements or Rent to Rents and how do they give me passive income?
Management agreements are when instead of selling your property you enter into a management agreement with Graham Howard Properties. The agreement is, we would take on all the daily management of the property. This can cover searching for tenants, selecting and checking them in to dealing with any issues they may have with the broadband at 9pm on a Saturday night.
We would typically enter an agreement for a period of 3 to 5 years where we would guarantee you your fix monthly rent regardless of how many rooms are let or empty. You get your rent month in month out like clock work without having to lift a finger.
Right now your thinking this is to good to be true and why would we do this?
We agree a fixed guaranteed rent (guaranteed rent to rent) with you the landlord, typically that rent would be about anything between £750 to £1300 per calendar month for a 4-6 bed HMO (every property is different so please contact us for a tailored quote). We make our money from the difference between what we pay you and what we receive from the tenants, minus costs.
Just to be transparent we are making money from doing all the stuff the landlord really does not want to do.
Are there any risks?
For us the risk is we have to keep paying the landlord the guaranteed fix amount regardless of whether the property has empty rooms or not. We are responsible for the tenants and their well being whilst living in the property. This is why before entering any agreement with landlords we evaluate all prospects and every offer we make is tailored to each property and its circumstance. It’s important the agreement is realistic and sustainable and with out 20 years business experience in Graham Howard Properties we know how to evaluate a prospect.
Do you take on HMO Properties?
Yes we do, in fact we do rent to rent agreements with HMOs, Single lets, commercial property and whole portfolios. Contact us today.
Misconceptions of Rent To Rent Management Agreements
Rent to rent management agreements are not AST
Stating the obvious, we will not be living in the property so a simple AST (Assured Shorthold Tenancy)Graham Howard Properties and the landlord will not work nor is used. Management Agreements are business to business commercial agreements .
Tenants still have the same rights
A rent to rent management agreement does not effect any landlord or tenancy acts or effect the rights of the tenants in any shape or form. Tenants rights must still be respected and any action taken by either Graham Howard Properties or the landlord must be inline with the law.
The landlord/s are still the owners of the property
A rent to rent management agreement does not effect the ownership of the property nor does it grant ownership to us or any 3rd party company.
It could be time to put your feet up and enjoy passive income.
So could a rent to rent management agreement be for you?
We advise all landlords to do their own due diligence you could possibly earn more rental income if you did everything yourself. However there is no denying the fact that a real genuine passive income is not only attractive but also life changing. It can realise stress and give you back years and better health. Not sure how you could put a price on that.
If you think this maybe a better option for you if you simply want to have a chat then please do feel free to contact us. We do not accept every management agreement opportunity for various reasons however we would be happy to assess your property with you and explore the possibility.
Please call us on 02380 990013 or email our team today – firstname.lastname@example.org
Feel free to contact us if you need any further information regarding our rent to rent management agreements or if you need further information regarding other ways we can help you please visit or properties solutions page here.