Rent to Rent Explained: A Landlord's Guide

Rent to rent has become popular with London and South Wales landlords seeking income certainty. Here is everything you need to know about how it works and what to watch out for.

The basics

In a rent-to-rent arrangement, a company takes a lease on your property for two to five years, pays you a fixed monthly rent below market rate, then lets the property to tenants themselves.

The benefits

Your rent arrives every month whether or not the property is occupied. You do not deal with tenant issues, maintenance calls, or compliance administration. For landlords who want truly passive income, this is the core appeal.

What to look for

A good operator will be transparent about how they use your property, carry adequate insurance, maintain it to a high standard, and return it in good condition at the end of the lease. Ask to see references from other landlords and confirm compliance with all relevant licensing requirements.

Common pitfalls

Some operators sub-let properties as HMOs without planning permission or fail to maintain them properly. Always use a reputable, established company and have any agreement reviewed by a solicitor.