Hi there,
One of our strategies to boost cash flow faster is Rent to Rent.
At the moment we are advertising by delivering door to door leaflets, shop windows and asking referrals from landlords that we have Rent to Rent already and all landlords we work with are very happy.
Would you be able to share some more marketing ideas that you use in UK or anywhere in world?
Thank you for help!
PPI
Ok, I'll bite. What is rent to rent?
Hi Mattnz,
Thank you for asking this questi.on.
In other words we could call it as sub-letting. We lease property from landlords for usually 3 – 10 years with their written permission to sub let it by rooms. We pay landlord guaranteed rent with no void periods, we manage and maintain property and we let it out on room by room basis.
Hope it helps.
Sounds like a good cashflow strategy.
What sort of rental yields do you pay landlords and what do you rent them out for?
Do you normally furnish them also?
What do you mean by "maintain" property? Does this include repairs?
I'm not aware of this strategy being used in Australia.
Hi Mattnz,
We usually rent it out as single let property, depending on property state and pay landlord a rent that's apples for area, we don't really use rental yields, in fact I am not sure how would you calculate it in this situation, because we are not buying property.
Most of properties are partly furnished from landlords and then we see which furniture we can use and which not. After we would furnish property properly and dress it up nicely, also we provide all fire safety and water sprinkles in property.
Regards your question about maintaining – we repair everything for 5 – 10 years, excluding structural repairs and heating boilers.
Hope this answer your questions, if you need some more info about legal paperwork or anything, let me know.
sounds like you turn it into a HMO (house of multiple occupation) ?
For that you need stuff like planning permission (not always easy to obtain as you often need adequate parking), fire doors and smoke alarms to all habitable rooms, sprinklers, emergency lighting, fire extinguishers, emergency procedures etc (pretty much what you need in a b & b) and to put a cleaner in there each week for the common areas (kitchen/hall/bathroom) and maintain the garden?
do you put the property back how it was at the end?
Hi Gazza21,
Yes, we turn property into multi let and vendor is always aware of it. Gazza, are you based in UK?
Most of the times we don't need HMO license, because in area we invest, we need license for properties which are more than 3 levels, we simply choose properties that are 2 levels, mostly they are 4 bed and 2 reception – so we still have 6 room to rent out.
We always provide smoke alarms to all habitable rooms, sprinklers, emergency lighting, fire extinguishers… But we don't really remove all features we have provided, only thing we remove from property after agreement is expired is our own furniture if it is in good condition.
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