How easy is it to find deals?

Discussion in 'Rent to Rent & Property Lease Options' started by KGeeson, Feb 12, 2016.

  1. KGeeson

    KGeeson Property Forum Staff Forum Partner

    I'm interested to hear from anyone who has actually tried a rent-to-rent investment and how they found it? Is it quite difficult to actually find this type of deal?
     
  2. Nicholas Wallwork

    Nicholas Wallwork Editor-in-Chief Staff Member Premium Member

    It's harder than some strategies but not as hard as you might think... Basically you are looking for a larger house you can rent (easy just look on the Lettings pages on Rightmove for your chosen area) and then you need to approach the landlord with your proposal. This is something along the lines of:

    - you'll be a good long term tenant, maybe offering a much longer lease than 12 months
    - you fully manage it for them
    - you'll keep the property in good condition
    - you'll always pay on time and maybe several months in advance (if that helps your negotiation).

    In return they might give you a favourable rent AND the ability to sub let the rooms separately.

    Remember you'll have to deal with any HMO regulations and ensure the landlord's mortgage allows for HMO's...

    It's not the property you'll be looking for, rather the motivated landlord who wants a long term, low maintenance tenant. A landlord who will be more flexible and grant you the terms you need to make it worthwhile...

    Start by looking at the "for let" listings and see if any properties look suitable...
     
  3. riyabenerg

    riyabenerg New Member

    • Thanks for sharing this Informative blog to us. All these creative real estate marketing ideas are helpful at the time of selling or buying property.
     
  4. nmb

    nmb Well-Known Member

    As this is purely a margin play, playing on the margin between letting the property as a whole and subletting individual areas, the more work you can do yourself the greater your income. In effect you are being paid to be the landlord and your income is the additional rental income you can bring in by separating off the property into different areas.
     
  5. Chris Tian

    Chris Tian New Member

    Well, the answer is going to differ from person to person experience. But if someone is taking or buying a property like this then they must have leads or they can call the local realtors to find someone for their place.
     
  6. lookinginvest

    lookinginvest Member

    I think you would be surprised to learn how many landlords would like to hand over subletting of a large building to a third party. If they are guaranteed the rent they require on a monthly basis, and everything is legal and above board, this could be a win-win for all parties. Why not approach landlords of larger buildings where they are advertising rooms to let?
     
  7. Elliott2018!

    Elliott2018! New Member

    Make sure you keep it under 4 rooms - this way you won't need the license!!!
     
  8. Elliott2018!

    Elliott2018! New Member

    This is very true - so many landlords we have found are willing to pass there property across to us as it gives them the income but completely hassle free!! Complete win for the landlord!
     
  9. Longterminvestor

    Longterminvestor Administrator

    As with any investment it all come down to how much margin there is in the property. I would assume the larger the house the greater the potential margin but then again new HMO regs might impact returns.
     
  10. Elliott2018!

    Elliott2018! New Member

    Depends if you want the expense of getting the license - anything above 4 rooms you need the license! Serviced accommodation is a good shout also!!
     
  11. diyhelp

    diyhelp Active Member

    Serviced accommodation has done ok for Airbnb :)
     
  12. Quick question - why would a landlord not simply put their property in the hands of a property management agent?
     
  13. John Wilson

    John Wilson Member Premium Member

    When you're doing R2R, you're essentially being the agent (in most cases, you sign a management contract with the landlord and not a lease), and selling yourself to the landlord in a very similar way. The advantage for landlords from you over most other agents though is that you're offering guaranteed rent over a long time period, and you may be offering a slightly higher rent that their normal net rent, after costs.
     
  14. Pranav

    Pranav New Member

    Use properties website for finding and analysis. As example if you are from UK then Rightmove.co.uk is best source. You can use free Rightmove data scraper that are freely available on google that can help to extracting data from rightmove by automated wey within very short time. I know about one web scraping services Infovium that can help you free of cost
     
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