Why does rent to rent have a bad reputation?
Welcome to the 27th episode of The Rent 2 Rent Success Podcast.
Today we’re talking about why rent to rent gets a bad rap.
Firstly, thanks so much for being here today.
We’ve been making the podcast for 4 months and we’re just about to hit 10,000 downloads!!
It kind of blows my mind.
People from all over the world and here with me.
It’s great that you’re here.
And thanks for listening.
Let’s dive into this week’s episode...
So why does rent to rent get a bad reputation?
If you look at Facebook groups, people are there saying it is illegal or immoral or wrong.
Here’s my take on it…
It’s because it has a low barrier to entry.
And for some of the reasons we love it, it attracts the wrong people
It’s an incredibly efficient business model:
• Little money is required to start up
• You can be profitable within a few months (most businesses are not profitable in the first year)
• You have consistent recurring cash flow (most start-ups do not have recurring revenue)
• You have the names and addresses of your perfect customers (most businesses have to find their customers)
And I love the fact that at its simplest, you’re just renting a property.
Something thousands of people do every day.
Because there’s a low barrier to entry, it attracts people who approach it from the mindset of “how can I make as much money as I can and deliver little value”.
This is not a passive investment strategy.
Typically, when you’re investing with little money you put in more time.
That can change over time because when we take on a new rent to rent property, it’s going to take little of my time because we’ve put those systems in place and we’ve employed staff.
But at the beginning you put time in to make money.
So, when I hear people say that you can just outsource your rent to rent to agent.
Put no money in.
Put no time in.
Make money consistently with no hassle.
Is it possible?
Yes
Is it likely when you start out as a beginner?
No
Why rent to rent works so well is you are more responsive than a letting agent with hundreds of properties.
You look after your housemates.
You can ensure your voids stay low.
You keep your properties well maintained.
And you do it in a few hours a month rather than 40 hours a week.
Now when you outsource that to an agent,
Often they’re not going to be as diligent as you were at keeping the rooms full.
They’re not going to be as responsive. The property’s not going to work as well. And perhaps you’ll find the profitability of the property goes down and there’s not enough for both you and the agent.
That’s the reality.
One of the things that is hugely important to my sister Nicky and I is an ethical approach.
It’s all about intention.
When your intention is to get as much as possible and deliver as little as possible, you rarely win long-term.
Yes you might get properties.
But landlords are unlikely to renew when you don’t deliver.
Our landlords want to renew after the term because we overdeliver.
We always pay the rent due in full and on time.
We keep the properties better than they thought.
We communicate better than they thought.
When people go in to get money,
And don’t focus on delivering good service.
Landlords won’t want to renew.
Tenants will leave.
What you want is for everyone involved with your business to be delighted to be working with you.
Not just satisfied.
Your team,
Your Landlords,
Your Housemates,
Your Contractors,
Your Cleaners,
Everyone to be touched by your business.
When you run things this way,
You get known.
Our Assistant Property Manager Luke does such a great job with this that we have over sixty 5 star reviews on Google.
Of course we’re not perfect.
We do strive though every day to be the best that we can be and deliver the best that we can.
I’ve heard of three landlords recently who’ve been really let down by a rent to renter.
Where the people just went off.
No communication.
So, if you’re going to do rent to rent.
Yes it’s a great business model,
But do it right!
Deliver exceptional value.
Get exceptional results.
Live life on your terms.
It’s actually easier to run the properties well.
And if you want to know more you can download the Rent 2 Rent Guide and Masterclass here.
And if podcasts are not enough,
We have a book coming out too.
It just feels so special.
We’re spending a lot of time on it.
We have a very special VIP book list so if you want to be involved in all the special offers we’ll have in the pre-launch then do sign up below:
✅ Sign up here ✅
There will be some prizes and surprises only for our pre-launch VIP list and of course everyone in our Kickstarter Programme.
Have you found this useful?
We’d be super appreciative you could leave a review on apple podcasts.
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And for every podcast review you give, you’re giving to help children in the Turkana region of Kenya to have the uniform and books they need to attend school. We’ll be contributing through B1G1.
Have a great rest of the week,
And remember,
Believe Bigger, Be Bolder and Be a Gamechanger!
See you soon!
Stephanie & Nicky
xx
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