The Truth Behind Rent-To-Rent Schemes In Thanet
13/06/2022 12:00 AM 0

Guaranteed rental schemes or rent-to-rent (R2R, not R2D2) schemes are growing in popularity. But hold on for a minute, what do they actually mean?

In a nutshell, it’s where you rent your property to a rent guarantee specialist who promises to pay you a certain amount every month and takes on the burden of managing your property.

Sounds great, doesn’t it? But is it too good to be true?

In this two-minute read, we look at why you should be cautious of rent-to-rent schemes and how they could be less profitable in the long run.

Less rental income

While you might be tempted to enter one of these contracts, often, the way the business offering you the R2R option can be profitable is to offer you less than the typical market rate.

By offering you a lower rate for a fixed term, the R2R business model will only work if the person managing your property charges tenants a higher rate. Therefore, you could be earning significantly less than if you were to rent through a regular letting agent.

The unknown agent

Once you sign up, you’re basically losing control of your rental property for a fixed term. How many tenants will be living in your property? Who will ensure that all the correct procedures are followed? What happens if significant repairs are required? What’s the tenant turnover like?

While a lot of these details can be included in a rent-to-rent contract, as a landlord, you may be putting your reputation at risk by offering up your rental to a third party.

Fast cash

The attraction of the guaranteed rental model is quick profit and few overheads. Little to no experience is required before setting up this type of business. This means your rental investment may be put at risk by agreeing to work with people who have little, or no cash at stake. Can you really afford to hand over your hard-earned investment to someone with no proven track record?

Using a local agent  

When you use a reputable local agent, they are regulated and experienced in letting out properties and often have a strong team behind them. They know what certifications are required, what makes a good tenant, and have access to tenancy deposit schemes and such like. So, you can feel confident in the knowledge that your property and tenants are looked after.

At Cooke & Co Estate and Lettings Agents our lettings team has been working in the local community for many years.

We can achieve market rate rents and we keep our fees as competitive as possible. Call us on 01843 234771 for more information.

 

 

 

 

 

Please Click Here to link seamlessly to hundreds of interesting community and property-related articles, videos, and pictures on our local blog/property insights page, Thanet coastal interactive tour, Up to date latest properties for sale and to rent, and much, much more.

Before you go we would love you to comment or like this article. Please feel to give your thoughts, helpful comments or even suggestions of articles you would like us to write about.

Leave a comment

Add Comment

Search

Categories

#Internet1 #Landlord1 #Letting1 #Tenants1 1952Tonow1 202137 202275 20501 Advice97 Ai1 Airbnb2 Alarm1 Amazing Apartment1 Aprilfool3 Arla1 Beaches1 Bitcoin2 Brexit2 Broadstairs6 Builders2 Building3 Bungalow1 Buyer1 Buyi1 Buying46 Buytolet19 Celebration2 Charity2 Children2 Christmas4 Cleaning2 Community4 Compromise1 Conveyancing1 Costs1 Council1 Covid 194 Crash1 Crime1 Customers18 Debt1 Decore1 Deposits1 Developers4 Divorce1 Diy6 Downsize1 Education1 Emptyhomes1 Energy3 Epc3 Eu1 Eviction1 Families1 Figures1 Financialservices8 Firsttimebuyer1 Flat1 Follow The Sun1 Football1 Forsale1 Fun13 Furnished1 Future3 Gadgets2 Garden1 General26 Golf1 Govenment1 Green1 Hacks1 Happyeaster1 Help2 Helptobuy2 Helptosell1 Holiday2 Home1 Home Automation1 Homeimprovement6 House3 House Price1 Houseplants1 Houseprices6 Housing1 Illegal1 Improvements1 Inflation4 Insurance1 Interest1 Interestrates1 Interference1 Investment11 Jargon1 Kids1 Kindness1 Kitchen1 Landlord57 Landlords2 Legislation14 Letting18 Limited1 Local3 Love1 Maintainance5 Management5 Marketcommentry1 Mentalhealth2 Modern1 Money1 Mortgages10 Moving1 Movingtips13 Mumanddad1 Naea1 Negatives1 Negotiation1 New Builds4 Newbuild1 Newhome1 Newnormal2 Older1 People1 Pets1 Planning1 Portals1 Price2 Prices3 Profit2 Property3 Ramsgate5 Redtape1 Reduction1 Relax1 Relocation1 Remortgage2 Rented3 Renting3 Rents10 Repairs4 Rightagent1 Risingprices1 Rubbish1 Safety1 Save1 Savemoney1 Scams1 Schemes1 Schools1 Seaview1 Security1 Selling61 Service2 Sizematters1 Social1 Sofew1 Sold3 Spain1 Spare Room1 Statistics21 Stats9 Stress6 Success1 Tax3 Team1 Tech3 Tenancy2 Tenant9 Tenants1 Thanet16 Thankyou1 Time1 Tips3 Tory1 Tour1 Trends8 Unfurnished1 Unique1 Vendor25 Windows1 Working1 XMAS9

Tags

#202212 #Landlord2 #Nationalgardeningweek1 #Nationalgardeningweekj0 #Tenant2 19521 20204 2021148 202277 20501 24 Hours1 7 Days1 Abroad1 Advice106 Aerialtour1 Airbnb1 Aprilfool2 Arla1 Arrears2 Award1 Bestpractice1 Bitcoin1 Brexit5 Broadstairs9 Budget1 Bungalow1 Buy3 Buying8 Buying Process1 Buytolet7 Capital Gains3 Cash1 Charity2 Children2 Chocolate1 Choosing1 Christmas8 Cleaning7 Community1 Comparison1 Condition1 Congratualtions1 Cooke & Co8 Councilhouse1 Covid 198 Crash1 Crime1 Customerservice14 Debt1 Decore1 Developer3 Development3 Divorce1 Diy3 Dogs1 Downsize1 Dss1 Electricity1 Eliots Close1 Emergency2 Energy4 Epc2 Eu1 Eviction1 Families1 Family2 Figures1 Finance2 Firsttimebuyer6 Forecast1 Forsale1 Fraud1 Friends1 Fun13 Future1 Gadgets1 Garden4 Gas1 Gen1 General12 Good News1 Goodestateagent1 Green1 Guarentor1 Hacks1 Handytips2 Happyeaster1 Happynewyear1 Help1 Helptobuy1 Historicprices2 Hmo1 Holidayrent1 Home2 Homeowner10 House Prices23 Houseplants1 Houseprice9 Inflation7 Insurance1 Interest2 Internet1 Investment9 Jargon1 Kids1 Kitchen1 Land1 Landlord69 Landlords1 Lanlord0 Legislation14 Letting4 Lettings1 Lifetime Deposit1 Limited1 Local3 Love1 Maintain1 Maintainance1 Margate8 Marketing1 Mature1 Mentalhealth4 Mortgage9 Moving2 Mulitigenerational2 Negative1 Newbuild3 Newnormal4 News1 Notice1 Online1 Paperwork1 Parents1 Pets2 Planning2 Portals1 Pricerise1 Prices1 Process1 Profit1 Property7 Ramsgate6 Referb1 Reference1 Relocation1 Rented2 Rents14 Reolutions1 Repairs4 Review2 Rightmove1 Safety1 Scams1 Schools1 Security1 Sell1 Selling38 Selling Process2 Selloff1 Shopping1 Sizematters1 Social1 Sold3 Solicitors1 Spain1 Special1 Spring7 Stats8 Staycation1 Stress2 Supply1 Support1 Tax2 Team1 Tech3 Tenant7 Tenants0 Terraced1 Thanet33 Tiktok1 Time1 Tips6 Torent1 Trends2 Valentine1 Valuation2 Vendor16 Whychooseus2 Windows1 Winter3 Xmas6