Conclusions and some statistics on rent to rent in practice

Problems do occur regularly, mainly because the parties have not fully understood the complexities.

CHAPTER TWELVE

Conclusions and some statistics on rent to rent in practice

The Property Redress Scheme (PRS) issued figures that show how the rising popularity of rent to rent arrangements is resulting in an increasing number of complaints over time:

1 September 2018 – 31 August 2019: 50

1 September 2019 – 31 August 2020: 58 (+16%)

1 September 2020 – 31 August 2021: 71 (+22.41%)

This data should be a warning signal to any landlord contemplating rent to rent.

Problems do occur regularly, mainly because the parties have not fully understood the complexities, or made proper legal provisions in the arrangement, as outlined above.

“In my view, if it is not carried out diligently [rent-to-rent arrangements] the landlord loses control of the property which is where the problems begin. I suppose I speak from being at the sharp end of dealing with evictions but I would advise any landlords entering into such an agreement to tread very carefully.”

Paul Shamplina, Founder of eviction specialists, Landlord Action, also powered by Total Property

If you have reached this far, you can see that rent to rent enters the realm of legal complexity and is often not the letting nirvana it is portrayed as, despite the promises of hassle-free, guaranteed rent and a property returned in good condition at the end of the term.

It is so easy for both landlord owner and rent to renter to enter into such an arrangement without fully understanding all the issues involved. This guide aims to enlighten and prepare any landlord considering entering into a rent to rent arrangement for the potential risks involved.

For more relevant information, National Residential Landlord Association (NRLA) recommended supplier, the PRS Tenancy Mediation Service, has written an article, ‘The pitfalls of rent to rent: Navigating challenges through mediation’, which explains more about how mediation can help parties reach a mutually agreeable resolution when there are disagreements in rent to rent cases. And this article on mediation and guaranteed rent contracts features case studies to illustrate how the PRS Tenancy Mediation Service can help.