Your Rent 2 Rent Success Contracts & Guide

What are they?

These are the contracts you need between yourself as a rent to renter and a landlord or letting agent. There are two contracts you can use: a lease agreement and a management agreement. Both are included.

The contracts you need between you and your tenants. Again there are two you can use: an Assured Shorthold Tenancy agreement where it is a person’s permanent residence and a Licence to Occupy – where it’s not a person’s permanent residence, for example contractors. Both are included.

Also included is a full Guide on which contract to use when.

 

Why you need the right contracts?

It is important to have the right contracts to ensure you conduct your business legally. When you start rent to rent, one single property can make from £500 per month after all costs. Over a 5 year term that’s £30,000. It’s worth getting the foundations right for your business.

To protect yourself as much as possible it’s important to use the right contract and include the right clauses. Many people don’t realise that solicitors start with a template for each contract type and then rely on you to advise all the clauses you would like to see in the contract. When you’re starting out you won’t know all the clauses you need.

And if your solicitor is unfamiliar with rent to rent, which most solicitors are, your solicitor won’t know which specific clauses you need. Over the years, we’ve had our contract revised to add new clauses which every rent to rent business needs.

Contracts are there to protect you when things go wrong. Here are some examples of clauses that most solicitors do not know to include and are a must for you are

  • A coronavirus clause to enable you to renegotiate the guaranteed rent or return the property if anything similar to coronavirus lockdowns happens again.

  • An emergency repairs clause to enable you to pay to fix an urgent repair, like a broken boiler in winter, and reclaim the payment back from rent, if the landlord is unable or unwilling to do so. 

  • A one-way break clause to enable you to return a property giving a specified notice period.

These are just a few of the important examples I could give you about clauses to be included in a rent to rent contract. Make sure you get your contracts right.

 

What’s included?

The agreements you need with a landlord or letting agent

✅ Commercial Lease Agreement

✅ Management Agreement

The agreements you need with your tenants or guests

✅ Assured Shorthold Tenancy – where it’s a person’s permanent residence

✅ Licence to Occupy – where it’s not a person’s permanent residence, for example contractors.

And we don’t just include the contracts in legalese and leave you to work it out. We provide everything you need to use the contracts confidently so you can use them straight away.

✅ GUIDE – A guide as to when to use each type of contract.

✅ UNDERSTANDING – An explainer document explaining each clause and translating from Legalese to English!

✅ SAMPLE – Sample completed contracts showing how to complete the contracts so you know what goes where.
✅ TEMPLATE – A template Word contract for you to add your branding and details and start using straight away.

CONTRACT FREQUENTLY ASKED QUESTIONS

 

  • You can go to a solicitor and have your contract drawn up.

    Using a solicitor can be expensive and time consuming.

    As I explained above, I was surprised to find that many solicitors do not understand the business model of rent to rent, even though they say they do!. Therefore they are unable to guide you on the right clauses to include.

    We are not solicitors, so take your own legal advice.

  • Many people think that if you use a solicitor that you’ll be better protected if anything goes wrong.

    However, if you have any issues and go back to the solicitor, you will find that in the contract you signed with them, you’ve agreed that with extremely few exceptions they are not liable if anything goes wrong. It makes sense that a solicitor would write a contract that means it’s difficult for you to sue them.

    Solicitors are very savvy on the law that protects them.

    Be very savvy on the law that protects you and choose the right contracts with the clauses which are specifically you’re your rent to rent business.

    Working with a solicitor can cost you more time, more money and you can end up with a contract which does not protect you. Do your due diligence if you choose to work with a solicitor.

    This is not legal advice.

  • There are two contracts you can use between yourself and the landlord or letting agent: a lease agreement and a management agreement.

    The Guide which comes with this Rent 2 Rent Power Pack explains clearly which contract to use when.

  • No. A Company Let Agreement is not the right agreement for a rent to rent business to use with a landlord or letting agent. There are many people online offering agreements which have not been written by solicitors and will put your business at risk.

  • Yes. The contracts to use between yourself and your tenants are included. There are two you can use: an Assured Shorthold Tenancy agreement where it is a person’s permanent residence and a Licence to Occupy – where it’s not a person’s permanent residence, for example contractors. Both are are in the Power Pack along with full guidance.

  • These contracts are written specifically for rent to rent HMOs. If you do not have, or are not starting, a rent to rent HMO business, this Power Pack is not for you.

  • Yes. You can use the contracts for either limited company or sole trader/partnership status.