What are the different types of rent to renter?
Local authorities, Property management companies, Private individuals
Local authorities
Local authorities will often take on tenancies from owner landlords to house families or homeless people when they find it difficult to place them in private tenancies. These could be seen as the gold standard of rent to rent arrangements as they are backed by the professional organisation of a local authority corporation. The agreement usually states that the property will be returned at the end of the term in a tenantable state, with a guaranteed rent having been paid throughout. Having said that, landlords should read the agreement carefully and get legal advice before signing as even these rent to rent arrangements with local authorities have not been without their problems.
Some companies and letting agents now specialise in the rent to rent business. These operators are a little more risky to deal with than a local authority – you should always do proper due diligence to find an operator with a good reputation and a successful track record. But, and this is a big but, there are some less than legitimate operators in this field and there have been many horror stories in the media of late where things have gone horribly wrong. Choosing a reputable company or agency in the first place is of crucial importance for landlords, and this involves doing thorough due diligence checks at the outset.
This is the riskier end of rent to rent. There is no doubt that some private individuals are operating some perfectly legitimate and successful rent to rent schemes, providing their landlords and their tenants with all the benefits from rent to rent that they seek. But, there are also some individuals, straight out of the “get-rich-quick” seminars, with no prior property management experience, who are likely to mess up big time.
Local Authorities
Property Management Companies
Private Individuals
