Rent to rent is sub-letting. Sub-letting is illegal.
Hello, hello, hello and welcome aboard episode 32 of The Rent 2 Rent Success Podcast.
Today we’re talking about rent to rent and sub-letting.
If anyone’s ever said that rent to rent is sub-letting and you’re not sure, this episode is for you.
And listen to the end of the episode where I’ll be explaining where to find a free library of searchable rent to rent videos, podcasts and articles.
Most people don’t know about rent to rent.
And those who do know about it, often regard it with suspicion.
So, I’m excited to bust the most common rent to rent myths in this series of rent to rent podcasts.
If you’re just joining us do go back to episode 1 as the episodes build on each other to give you the full view of rent to rent success.
So let’s get started...
Is rent to rent sub-letting?
And this may surprise you.
Yes rent to rent is sub-letting.
Many people talking about rent to rent say it isn’t sub-letting.
It is.
But isn’t sub-letting illegal?
Most people just can’t believe that rent to rent is a legitimate business model.
Let’s get this one sorted straight away.
Yes, sub-letting is legal.
And rent to rent is legal.
Rent to rent has been used in commercial property for a long time. Commercial leases are long-term leases which give a commercial property tenant (usually a business) the right to sub-let a property.
Typically, these are ‘full repairing and insuring’ leases, where the tenant takes on all the costs of repairing and insuring the property.
This model came over into residential property and has been adapted to give residential landlords similar guarantees as commercial landlords enjoy.
Northwood is the biggest guaranteed rent letting agent in the UK with over 85 offices, it started as a single office in 1995.
The reason why some people think rent to rent might be illegal is that subletting has a bad name.
Subletting simply means…
“to lease to a tenant”.
Subletting usually comes to public attention when it’s in the news because someone has done it illegally without the knowledge of the property owner.
That is absolutely not what we advocate.
Rent to rent is legal when it’s done with the full knowledge and consent of the owner and when the correct contracts are in place.
You can find out more about contracts in episode 16 of the podcast in your podcast app or by visiting https://rent2rentsuccess.com/16
If you’re still unconvinced you might be swayed by the fact that rent to rent is recognised by the UK government’s Property Ombudsman, the Property Redress Scheme (PRS).
Here’s the PRS definition…
The Property Redress Scheme’s definition of Rent to Rent
Rent to Rent is where an individual or company, known as the agent, rents a property from a landlord for a specified period of time during which the landlord receives a fixed guaranteed rent from the agent. This can be attractive to landlords who want a hands-off investment with guaranteed income. The agent then lets the property, generally on a room by room basis and manages the property.
The fact that so many people dismiss this strategy out of hand means there’s more opportunity for you.
What you know and act upon will change your income and your impact.
Critics may grudgingly admit that it is in fact legal but wonder, ‘why would a landlord give a property to me?!’
And that’s the question I’ll be answering in the next episode.
That's it for this week.
But I mentioned at the beginning of the episode that we have free searchable series of videos, podcasts and articles on all things rent to rent here:
You can search for whatever you’re looking for, we got it!
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Until next time,
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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