FAQs

What is rent to rent?

 Simply put, rent -to -rent is where a company, a local authority (corporation) or an individual rents a property from a landlord (owner) and the landlord receives a guaranteed rental income for an agreed term, regardless of whether the property is occupied or not. 

The rent to renter then sublets the property to an ‘occupier tenant’ or serviced guests (in our case) at a higher rate in return for the risk taken and any additional refurbishment work carried out. 

What are the advantages for landlords?

There are numerous advantages for landlords who are open to the rent-to-rent strategy, such as not having to find tenants and organise periodic tenancies, along with avoiding large management fees from letting agents.

In addition, there are no void periods, or call outs and repairs to worry about. The property is returned in a pristine let able state at the end of the contractual term, thanks to the property being carefully maintained via a dedicated cleaning and maintenance team.

Is rent to rent legal?

Contrary to popular belief, rent to rent is legal and not to be confused with illegal subletting – when a residential tenant on an assured shorthold tenancy (AST) or occupation contract, or a council tenant, sublets without the knowledge of the property owner and against the terms of the lease. This is not the case with rent to rent due to the fact that legal agreements with both parties are firmly in place resulting in a legitimate, advantageous commercial arrangement.

Will I be responsible for repairs?

It is not possible to draw up a contract whereby the landlord avoids all responsibility for repairs. Under Section 11 of the Landlord and Tenant Act 1985, the rent to renter is liable to the occupier and the landlord is liable to the rent to renter for repairs, although the landlord can make the rent to renter responsible for repairs and maintenance not covered by Section 11, and also the state of the property at the end of the term.

In order to avoid disputes over dilapidations and who pays for what, the landlord should arrange for a schedule of condition to be drawn up by an independent third party, ideally a chartered surveyor, and agreed by the parties and attached to the lease at the outset.