There are many rent to rent pitfalls that you must take into consideration before you decide to create a rent to rent company.
The pitfalls in rent to rent are unfortunately not spoken about at most property courses. (You are sold the dream, not taught the reality).
In many property courses newbies often leave feeling extremely pumped and ready to jump straight in the deep end, this is great HOWEVER if you are not fully aware of the rent to rent pitfalls you could end up in some seriously hot water.
That’s why the video has RENT TO RENT EXPOSED in the title as we want to expose the realities of running a rent to rent business.
The main rent to rent pitfalls we discuss are:
1) Rent to rent is not passive income, despite what you might have heard. It is actually only passive for the landlord.
2) You MUST guarantee the rent to the landlord. There are no many issues that could come up making it difficult to guarantee the rent. You must have the correct protocols in place to minimise the risk.
3) You must deal with tenant issues, especially at the beginning. This is a quite a big rent to rent pitfall, for some reason not many people talk about this.
4) You do not own the asset at all. This is not really a huge pitfall for rent to rent because most people use the rent to rent model for cash flow.
5) You may need a guarantor when going through an estate agent if you do not personally earn enough or if your company hasn’t been trading for long enough.
Also if you want to read a book that goes through real life scenarios of the pitfalls of rent to rent. I would recommend this book:
Here are some videos you might find helpful:
How to get a RENT TO RENT DEAL (HMO’s) | 4 Simple Steps
Rent to Rent Compliance & Insurance Checklist | 7 Simple Steps
What to look out for on a Property Viewing | Rent to Rent HMO Strategy UK
Do you need a Property Mentor? Honest Opinion
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