Rent to rent doesn't work in Article 4 areas
Today we’re talking about article 4 in the last of our series of episodes busting common rent to rent myths.
If you have no idea what an article 4 area is or if you think article 4 will stop you doing rent to rent, you’re going to love this episode.
If you’re just joining us, go back to episode 1 as the episodes do build on each other to give you the full view of rent to rent success.
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Let’s dive in...
Article 4 is a direction under article 4 of the General Permitted Development Order which enables councils to remove some 'permitted development rights'.
What Article 4 means in plain English is that a planning application has to be submitted to the relevant council to change a house to an HMO even for 3 or 4 people, which under the national legislation wouldn’t require Planning.
(It should be noted that Planning permission is, and always has been, required to convert a single family house into a large HMO with 7 or more unrelated persons sharing).
So many people use article 4 as an excuse not to get started.
We have a successful rent to rent business in an Article 4 equivalent area and because we focus on existing HMOs, it doesn’t stop us.
If anything, it’s an advantage because there is less competition because it’s more difficult to convert a house to an HMO.
When you focus on existing HMOs everything is already done for you. You don’t need to pay for additional works to get it to HMO standard.
You don’t have the uncertainty about whether planning will be granted.
And yes, landlords and agents will rent existing HMOs to you on a rent to rent basis.
Sometimes, it can be worth the time and expense of going through planning, for example if you’re buying a property or if you have the property on a very long lease at a no-brainer rent.
Generally, though we do not recommend that as beginners you go for properties that aren’t HMOs in Article 4 areas.
Although there are exceptions to every rule and Rent 2 Rent Kickstarter Maria Opaniran has done this successfully and you can hear her talking about it in the bonus Rockstar episode.
Rent 2 Rent as a busy mum of 3 with rent 2 rent Rockstar Maria Opaniran
We suggest you start with already licenced HMOs.
So, while others think article 4 means you can’t get started.
You now know that rent to rent works on existing HMOs. Therefore you can operate in all areas, even Article 4 areas.
But shhhh don’t tell everyone, let’s keep it between ourselves.
Our book Rent 2 Rent Success is out soon.
Our ethical 6-step system to get started in property without buying it. We’re so excited to share it.
We’re already getting amazing feedback from our early readers.
If you want pre-launch access to the book, join our exclusive VIP list. The pre-launch will only be open to our students and people who join the VIP list.
https://rent2rentsuccess.com/book
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Until next time, have a great rest of the week.
And remember,
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See you soon!
Stephanie & Nicky
xx
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