Rent2Rent - A Guide
There’s a lot of different ways to make money in this world. There’s also multiple things that you can do with property. Something which is becoming increasingly popular these days is the rent2rent idea. It’s been widely praised as a good way for people to make a passive income stream that benefits multiple people all at once. However, getting more information about this scheme has become something of a challenge. It’s hard to understand what rent2rent actually is if you’re not well versed in the property market and the world of renting. To try and help you understand rent2rent in more detail, we’re going to be taking a look at what it is, how it can help you, and what you’ll need to consider in order to make it a viable option.
So. What Actually Is Rent2Rent?
To begin with, let’s break Rent2Rent down into something that can be easily understood. At a basic level, it’s exactly what it sounds like - you’re renting a property with the intention of then renting it out to someone else. To draw a similarity, it’s like when a business contracts someone to perform tasks and complete work, and they then sub-contract the task to another company or individual. That’s a close idea of what rent2rent actually is. As a Landlord, you’re renting your property out to a company or business. That business or company is then free to rent it out to another company, for example like a hospital or airport premises, or a private tenant.
The process begins by renting out an apartment or home. The renting company and the landlord will agree as to how many people the property can be let to, whether any rooms can be converted, and whether there’s any refurbishment work that’ll need doing. The company will then rent out the space to other people, and not live in it themselves.
What Are The Benefits Of Rent2Rent?
From the perspective of a landlord, a rent2rent scheme can be a very simple way to generate passive income. There’s no question that being a landlord can be a challenging career. You are constantly on call and required to fix problems if they arise. A lot of that is subverted when you rent2rent with a company. You’re giving a lot of those responsibilities over them, so they can handle the maintenance, queries and other issues that may arise. Your role becomes that of property owner and occasional aid when things get particularly rough.
Rent2Rent - Misconceptions?
Naturally, such a relatively new scheme will generate a fair degree of skepticism, as most Landlords will naturally be worried they might stand to lose out, but this of course isn’t the case.
Obviously, one such worry that is shared by a lot of landlords is that they somehow lose their power or their rights in some way. As a landlord, you don’t lose any control over the situation, as you’re at the top of the chain. You’ll be working with a professional organisation who will ensure that the money you’re entitled to you do in fact get. Your workload as a landlord isn’t increased either - quite the opposite in fact. A lot of the day to day maintenance is passed onto the company renting from you, decreasing your responsibilities while still granting you control of what’s happening.
So Should I Enter Into A Rent2Rent Scheme?
Having considered all of this, should you now consider a rent2rent scheme? Absolutely. If you’re a landlord with a property, it can be a sensible investment to allow a company the ability to let a property. The main advantage has to be the fact that you’re getting a guaranteed rent from that organisation, and that a lot of the responsibilities you may not have relished having are now someone else’s burden to bear. It’s almost like the company becomes a landlord themselves - they collect rent, handle day to day issues, and make sure that tenants aren’t causing any problems. However as the owner of a property, you’ll have money come to you on a consistent basis. It’s a mutually beneficial scheme for you and the renting company, especially if you work together to make a home suitable for multiple people. However, it’s important to keep one thing in mind when agreeing to a scheme of this kind. If the property requires refurbishment to become acceptable for a rent to rent scheme, then the cost for the refurbishment may fall to you. However, it’s worth noting that there are instances where the company renting the property from you will cover the cost of these alterations and changes.
Overall, the rent2rent scheme is something which has become quite popular in recent years, and it’s easy to see why. Admittedly, it does alter the dynamic between a landlord and tenant. However, if the transition is successful, it can become a mutually satisfying arrangement. In return for providing a secure rent, the landlord have peace of mind, as well has having a lot of the traditional responsibilities removed. They’re not bound by the common burdens and requirements that other landlords would have to deal with. Instead, they can divert a lot of that to the renting company or organisation, and have some breathing room to do other things. The tenants themselves have a place to live, the renting business has an income stream, and so do you. However you look at it, it’s a good situation for anyone to get involved in.