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5 Ways Rent-to-Rent Can Increase Income and Reduce Stress for Property Owners

Rent-to-rent is also known as guaranteed rent.

Do you own a property that you’ve tried to rent out? If so, you’ll likely understand just how much goes into a successful tenancy. 

From marketing to viewings, vetting prospective tenants, then managing them once they’re in to ensure you’re paid. This is the process when everything goes to plan! Unfortunately, issues can arise at any stage before or during a tenancy, potentially costing you. 

Being a responsible landlord takes investment, whether it’s time, money or energy. If you are not a full-time landlord, it’s likely your surplus time and energy are limited, which can stop you from maximising your rental property’s potential. 

Here, at Adjoin Homes we are always looking for new ways to support our landlords. We are excited to tell you that we have launched several guaranteed rent products, with our most popular involving rent-to-rent, which we discuss in more detail below. 

What is rent-to-rent?

In essence, you rent your property to a company or individual who takes on the key responsibilities for the property. These will include paying rent, paying bills and utilities, and in some cases, a provision for day-to-day maintenance. As part of the agreement, they are granted permission to rent this property to another party.

Typically, the ultimate occupants of the rental property have needs that are not in line with the length of a standard tenancy agreement. Examples include academics doing a research project over a few months, someone temporarily relocating for work, or visitors to the area. 

The key benefit to the owner is that they have one point of contact, who is responsible for paying the rent. In some cases, such as ours, the rent is guaranteed and we may undertake compliance certification at our cost. As the property owner, you can rest assured, knowing the rent will be paid in full on the same day every month.

How does rent-to-rent work?

  • You have a property you’d like to rent out, with a rental price in mind.
  • You rent the property to Luna Ltd, who become your tenant.
  • Luna Ltd pays the rent every month, eliminating void periods.
  • Luna Ltd places occupiers in the property for varying lengths of time
  • Luna Ltd makes its money by taking on the risk of generating more income than it pays in rent.

How does rent-to-rent benefit the property owner?

  1. Guaranteed Income: Luna will pay the rent in full every month, regardless of whether the property has any voids.
  1. Hands-Off Management: You delegate the day-to-day hassles of property management to Luna, allowing you to focus on other aspects of your life or business.
  2. Remove Vacancy Risk: Luna commits to paying the rent in full throughout the tenancy. Even if the property is void, Luna still pays.
  3. Reduced Maintenance Costs: Luna can take on the responsibility for day-to-day maintenance and repair expenses, saving you money.
  4. Reduced Legal and Compliance Burden: For the most part, Luna handles the legal and compliance aspects of the property, reducing your administrative burden and ensuring adherence to relevant laws.

Sounds great! What are the risks?

You have to do your due diligence on Luna. Unfortunately, there are some Rent-to-Rent providers that do not do things properly.

For example, in London, there is an annual limit on how many days a property can be let on a short-term basis. Most providers adhere to the rules, but some don’t as they chase more profits. 

Some providers may not stick to the rental due date as they wait for funds to come in from occupiers, which can cause issues with your cash flow. 

Other providers may not take adequate care of the property. They may not have the expertise, or may not regularly visit the property, meaning it could fall into a state of disrepair. 

Their plan could be to do just enough to get an occupier, rather than aiming to maintain it to the standard they received it. 

The key thing is effective communication. Ultimately, it’s likely something you have never done before. Ask as many questions as necessary to feel comfortable. Any good provider will be happy to guide you through the process, understanding your needs and concerns and working through them with you. If they become flippant or annoyed when you query something, it’s likely their behaviour will become more erratic with time. 

You want to find someone who will take care of your property like it’s their own, balancing their objectives with yours, ensuring both parties are satisfied. 

The aim is to create a win-win scenario, reducing your stress and cost while providing good quality accommodation to those who need it. 

Adjoin Homes can be your ideal Luna. Here’s why.

Adjoin Homes: Your Rent-to-Rent Provider

We are a fully-fledged estate agent and a member of the Property Redress Scheme. We adhere to all legislation so you can be confident that your property is being looked after properly. 

Our team has decades of experience working with residential property, is ARLA qualified, has managed large property portfolios, and has access to high-quality occupiers. 

As an agent, we aim to improve the experience of Property Owners. Being a landlord is becoming ever more complex, so our services make it easier to manage your property, with the aim of increasing your returns.

The Key Features of Adjoin’s Rent-to-Rent Scheme Scheme

  • Guaranteed Rent – Rent is paid on time, in full, every month, regardless of occupancy.
  • Reduced Costs – We eliminate void periods and can take over responsibility for day-to-day maintenance.
  • Speed of Tenancy – We can become your tenant in as little as 3 days.
  • Flexible Leases – Agreements can run from 6 months up to 10 years, with break clauses customised for every situation.
  • No Hidden Fees – You will receive the rental price quoted on our offer in full. Management is included in all Rent-to-Rent schemes.
  • Contribution to Refurbishment – On longer leases, we can discuss taking on redecoration and refurbishment works at our cost. 

We are currently taking on Studio, One and Two-bedroom properties in Zones 1 and 2 in London. If you have one or more or know someone who might be interested, get in touch! 

We are also able to take on multiple units or whole blocks at once. 

Get in touch with us now.

Frequently Asked Questions