What is Rent to Rent?

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What is Rent to Rent, and is it a good option? 

A Rent to Rent agreement could be an excellent option for landlords to be able to receive guaranteed rent for a fixed amount of time from a Rent to Rent company that will manage the property on behalf of the landlord. 
Unlike traditional letting agencies, where if the landlord’s property is empty the landlord will not receive any income, with a Rent to Rent agreement, the Rent to Rent company will underwrite the rent to ensure the landlord receives the guaranteed amount each month. 


So why would a Rent to Rent Company guarantee and underwrite rent?

As you are aware of all contract to be successful, both parties of the agreement need to achieve something from the agreement. The landlord receives a guaranteed payment each month, and in most cases, can be completely handsfree from their property. The Rent to Rent company will manage the property and unwritten the property as they will be a financial reward for doing so. The Rent to Rent company will work out how to maximise the rent the property can achieve. In most case this will be done by redecorating the property, adding new furniture and marketing the property to new tenants, that would be happy to pay a fair market rent for the refurbished property. The Rent to Rent company will then deduct a management fee of the total rent received, to pay back the cost of the redecoration and their management time. 


This option can benefit the landlord in more than just a financial way, as it will allow the landlord to be handsfree from their property mostly. With the comfort of knowing that the Rent to Rent company also has a financial benefit to make sure the property always stays in good condition and tenant are remain happy. 

What should be in the Rent to Rent agreement? 

The management company would typically take responsibility for all the house utilities, issuing and checking all
tenant documents and dealing with any tenants concerns. A legal agreement usually done by solicitors will iron
out who would be responsible for 
· The cost of decorating/refurbing the property
· Boiler / Central Heating Systems
· Responsibility of pre-existing fire alarms/smoke detection systems
· Roof and mains structure 
· Building Insurances
· HMO License
· Compliance 
How long could the Rent to Rent agreement be for?

The Rent to Rent company could be investing a lot of time and money into the agreement and therefore would
need at least a three to five years agreement. It would be recommended to have certain break clauses within
the contract, that would be beneficial to both parties. Having a photographic schedule of condition before
taking on the property would also benefit both parties favour.


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