How would you find the perfect Rent to Rent property? Understanding where to look and how to search could be a valued helping hand at the early stages of building your business. Here we offer you that hand, to guide you through some practical tips for getting you started and finding the properties that will be best suited to a Rent to Rent strategy.
What is a Rent to Rent Property?
As its name suggests, Rent to Rent as a strategy, involves taking control of a property from a landlord and letting it out to your own tenants. The fee that you pay the landlord will meet their needs whilst also leaving profit for yourself from your tenant’s rental payments, once you have deducted your other costs also. Hence, with Rent to Rent you never actually own the property yourself. For a more in-depth look at the Rent to Rent strategy, why not have a read through our blog post – Rent to Rent Deals: 5 Things we love about them.
The ideal Rent to Rent property therefore, will be one owned by a landlord who is wanting ‘out’ but also one that you see potential in. The landlord may be struggling to cope with letting out their property, perhaps it is in a poor state of repair or even empty and is draining their bank balance. The circumstances for their pain can be many fold. Want to know how to find them, attract the right tenants and more? Keep reading for our 8 top tips for success.
Tip One: Know your Competition
Unless your area is extremely remote, there is a high chance that you will not be the only person in your area on the hunt for Rent to Rent properties. However, you can use this to your advantage! Simply research your competition to see how they market themselves and how they operate. There is a good chance that if it is working for them, it will work for you too.
Tip Two: Build Relationships
Building relationships will be key to finding the properties you need. Begin by speaking with local letting agents to find landlords that may be struggling with their property. Getting to know other people in the area who regularly work with landlords can generate leads, such as trades people, facility management companies or accountants. Maintaining regular contact will keep you fresh in their minds.
Tip Three: Empty Homes
Empty homes are ideal opportunities for a Rent to Rent strategy. If a property is empty it will likely be costing the owner money and they will be motivated to have the problem solved for them. Keeping your eyes peeled when out-and-about in your area plus speaking to locals can yield surprising results. In addition, most local councils will have a dedicated empty homes officer who will be a valuable contact.
Tip Four: Rental Research
Researching rental properties in the area will give you a good indication of the types of property that are in high demand and also the types of tenants that you should be looking to attract. Speaking to the letting agents will be a good opportunity to gather information but also the online property search websites can be utilised to great effect.
Tip Five: Employer Research
Along with researching the local rental demand, understanding the large employers in the area will also give a good indication of your potential tenant demographics. You may discover that the area will not be best suited for Rent to Rent property, but you may also be able to use it to fine tune your marketing campaigns.
Tip Six: Social Media
The various social media platforms can be invaluable resources for property investors. They offer a fantastic gateway to local landlords and landlord groups. Through being active online you will be able to let people know what you are doing and hopefully attract suitable landlords. A large part of your success will also be based around building credibility, something that you can grow by having an engaging presence on social media.
Tip Seven: Networking Groups
As with social media, joining local networking groups can really help to build credibility and make useful contacts within your area. Through the connections of meeting other investors, contractors, trades people and property agents for example, you will begin to build a network and let people know that you can provide solutions.
Tip Eight: Free Ads
Now for the obvious one… simply post adverts in local newspapers, local online sales and wants sites, in shop windows… anywhere. The key to success will be to grab the attention of distressed landlords so include selling points like guaranteed rent, no voids, no tenant stress etc.
Implement your plan
The ball is now in your court to take action and implement your plan. Nothing will happen unless you get out into your investment area and begin building those connections and start being proactive about finding suitable properties. Excuses are easy to make, especially when you make them to yourself.
If you are considering a Rent to Rent property strategy, it is important to understand that it is a hands-on business model. It will take time, effort and determination, however the rewards will be worth it if you do things right. If you want to know how to do things right, we host a dedicated Rent to Rent Advanced Course to take you through all you need to know based on the real-world experience of our professional trainers. With many legal considerations, obligations and pit-falls, having a solid education is strongly advised.
