Rent-to-rent (R2R) is about controlling a property, not owning it. Your company leases from the landlord on a corporate let/management agreement, you operate it (often as serviced accommodation or contractor stays), and you keep the spread after paying a fixed “guaranteed rent” and running costs. When done compliantly, R2R can produce £500 £1,000+ pcm per unit in strong locations.
What Rent-to-Rent Actually Is (UK, 2025)
• Structure: Your company takes a head-lease from the landlord (not personal sub letting).
• Use cases: Short/medium-term stays (contractors, business travellers, relocations), professional house-shares (where licensed), or premium single-let with full management.
• Value to landlords: Fixed income, fewer voids, zero tenant management, and professional standards.
When R2R Works Best
• City centres or transport hubs with consistent business demand (contractors/NHS/film crews). • Stock needing hands-on management: tired decor, voids, or remote landlords.
• Landlords prioritising certainty over squeezing the last £50 of rent.
When it doesn’t: poor demand data, lease/mortgage/user-clause conflicts, or weak compliance plans.
The Compliance Checklist (don’t skip this)
• Permission & contracts:
o Written consent from freeholder and lender if required.
o A company/corporate let agreement (clear repair obligations, permitted use, break clause).
• Licences & regulation:
o HMO licence where applicable; local Article 4 rules if converting.
o Planning Use Class and any short-stay restrictions in your council.
o Health & safety: Gas/EICR, alarms, fire doors where required.
• Money & data:
o Client Money Protection (if taking deposits/rents), TPO/PRS membership, ICO registration.
o Insurance: Buildings (landlord), specialist SA/serviced-let cover (you).
• Tax & rates:
o Council Tax vs Business Rates (check eligibility for small business relief).
• Local rules change always verify with your council before launching.
The Numbers: A Simple R2R Model
Income: Booking/letting revenue
Minus: Guaranteed rent to landlord + utilities + cleaning/linen + platform fees + consumables + maintenance + insurance + council tax/rates = Your profit.
In the right area with strong occupancy, operators often target £500–£1,000 pcm per property. Your results will vary—validate with conservative assumptions.
1)Three Landlord Scripts (Copy & Paste)
The Guaranteed-Rent Pitch “We’re a professional company placing vetted business guests and relocations. We take a company let for [X years] and pay you £[fixed] per month, 12 months a year. We handle furnishings, compliance, cleaning, and minor maintenance. You get predictable income and no tenant chasing. Let’s walk your concerns and permissions so everything is fully compliant.”
2) The Risk-Reversal (with Break Clause)
“To de-risk launch, we can include a mutual 3-month break clause. If occupancy underperforms, we’ll exit tidily and return the unit as agreed. If performance is strong, the agreement simply continues.”
3) The “Isn’t This Sub-Letting?”
Objection “This is not casual sub-letting. It’s a company let with your consent, appropriate insurance, and—where needed—freeholder/lender permissions. We carry specialist cover and maintain audit-ready records. You’re contracting with a business, not an AST tenant.”
Sourcing Deals & Guests (what actually works)
Landlords: portals (filter for voids/price drops), landlord forums, LinkedIn, networking with brokers/solicitors, ageing rental listings, tired HMOs.
Demand:
Corporate contracts, construction/utility contractors, NHS trusts, relocation agents, insurance placements.
Ops:
Dynamic pricing, strict guest criteria, professional photos, hotel-grade cleans, and weekly owner reports.
Contract Essentials
1. Term & breaks: e.g., 12–36 months with a mutual break after month 3–6.
2. Use: clarity on short/medium-stay or professional HMO; maximum occupants.
3. Repairs: who handles what; response SLAs.
4. Furnishings & handback: inventory, wear-and-tear rules, end-of-term standards.
5. Compliance pack: certificates, insurance, permissions—kept current.
Common Pitfalls (and fixes)
No permissions: Always secure lender/freeholder consent if needed.
Weak demand mapping: Validate weekday vs weekend occupancy before signing.
Under-insuring: Standard BTL/landlord policies usually don’t cover SA; get specialist cover.
Sloppy ops: Missed cleans and slow messaging kill reviews—build checklists and KPIs
How LetsBid Helps You Win R2R in 2025
Lettings Prospecting: Identify landlords with long-void or under-priced stock and start conversations fast.
Probate & Off-Market Leads: Find inherited/absentee-owner properties ideal for guaranteed rent offers.
Agent-Controlled Tenders: Run a sealed-bid process for landlords choosing between multiple R2R operators—transparent, fast decisions.
Compliance & Docs Hub: Store KYC, permissions, agreements, and renewals in one place; keep an audit trail.
Performance Reporting: Share live KPIs with landlords to retain units and win referrals.
A 14-Day Action Plan
Days 1–2 : Pick your patch; map business demand (hospitals, projects, business parks).
Days 3–5 : Build a landlord list (100+), draft your offer and compliance checklist.
Days 6–7 : Send outreach, book viewings, gather permission requirements.
Days 8–10 : Run conservative deal models; negotiate fixed rent + 3-month mutual break.
Days 11–14 : Sign, insure, furnish, list across channels, launch dynamic pricing.
The Bottom Line
Rent-to-rent is not a loophole—it’s a professional management model. If you secure permissions, price conservatively, and operate like a hospitality business, R2R can produce reliable cash flow while giving landlords peace of mind.
Ready to source your first (or next) R2R deal?
Book a LetsBid demo to see how Lettings Prospecting, Probate leads, and agent-controlled tenders help you fill your pipeline and convert landlords faster.
