Here are 4 secrets on how to make money with Rent to Rent property investment!

Rent to rent is where we rent/lease a property from a landlord, then sublet it to guests/tenants on a room by room or nightly rate basis. A rent to rent property business involves renting/leasing a property from a landlord, then subletting it to guests/tenants on a room by room or nightly rate basis. The most common use of Rent to Rent is SA (Serviced Accommodation) and HMO (House of Multiple Occupation).  

 Rent to rent strategy allows anyone to manage a property without owning it while making profits whenever it is booked or a guest chooses to stay there. While it seems quite simple, there are several factors that you need to factor in to start making a profit from it.  

Here are 4 secrets on how to make money with Rent to Rent property investment for anyone who is new to the venture!  

1. Choose your strategy (SA, HMO, Single let) 

According to your location and target audience. Under no circumstances should you use any of these strategies simply because you fancy it best without checking whether the location and the property are suitable for such a purpose. For example, do not try to use a 3-bedroom property for an HMO conversion unless you’ve made sure the property can be converted into a 4-bed minimum or bigger, and that the location is suitable for HMO tenants.  

 2. Make sure you do a proper check during the viewing. 

You probably won’t have much time so you are going to need to do good due diligence and proper checks in terms of what works, refurbishment and maintenance will be needed, otherwise, you won’t be able to correctly estimate your numbers which could make or break your deal.  

 3. Set up your property efficiently.

Do not try to use lower quality accommodation for corporates or professionals as this type of accommodation is better suited to students/contractors depending on the location. Make sure you check the property at the viewing and estimate all the numbers as accurately as possible. Missing out on important things like any refurb or maintenance jobs that need doing will affect your deal – which could ultimately make or break your deal.  

 4. Check your competition. 

An in-depth analysis of your market is crucial as you are going to need to understand who your competition is, what prices they charge, and what quality/service they offer to your market. Failing to get this right will mean you won’t be able to estimate your numbers correctly in the deal which could cause huge losses for you or your investors’ business.