The Truth Behind Rent-To-Rent Schemes In Medway

Posted on: 13 June 2022

The Truth Behind Rent-to-Rent Schemes in Medway

As a busy landlord juggling a portfolio of multiple properties, you might be thinking about ways to reduce your workload or secure a regular income. Have you been enticed by promises of guaranteed rent?

 

Guaranteed rental schemes or rent-to-rent (R2R, not R2D2) schemes are growing in popularity. But hold on for a minute, what do they actually mean?

 

In a nutshell, it’s where you rent your property to a rent guarantee specialist who promises to pay you a certain amount every month and takes on the burden of managing your property.

 

Sounds great, doesn’t it? But is it too good to be true?

 

In this two-minute read, we look at why you should be cautious of rent-to-rent schemes and how they could be less profitable in the long run.

 

Less rental income

While you might be tempted to enter one of these contracts, often, the way the business offering you the R2R option can be profitable is to offer you less than the typical market rate.

 

By offering you a lower rate for a fixed term, the R2R business model will only work if the person managing your property charges tenants a higher rate. Therefore, you could be earning significantly less than if you were to rent through a regular letting agent.

 

The unknown agent

Once you sign up, you’re basically losing control of your rental property for a fixed term. How many tenants will be living in your property? Who will ensure that all the correct procedures are followed? What happens if significant repairs are required? What’s the tenant turnover like?

 

While a lot of these details can be included in a rent-to-rent contract, as a landlord, you may be putting your reputation at risk by offering up your rental to a third party.

 

Fast cash

The attraction of the guaranteed rental model is quick profit and few overheads. Little to no experience is required before setting up this type of business. This means your rental investment may be put at risk by agreeing to work with people who have little, or no cash at stake. Can you really afford to hand over your hard-earned investment to someone with no proven track record?

 

Using a local agent  

When you use a reputable local agent, they are regulated and experienced in letting out properties and often have a strong team behind them. They know what certifications are required, what makes a good tenant, and have access to tenancy deposit schemes and such like. So, you can feel confident in the knowledge that your property and tenants are looked after.

 

At Greyfox, our lettings team has been working in the local community for many years.

 

We can achieve market rate rents and we keep our fees as competitive as possible. Call us on 01634 865595 for more information.

 

 

 

 

 

Share:


Recent Articles

30 June 2025

How To Revive A Stale Listing: Tips For Medway Sellers

Is your home taking longer to sell than you'd like? It's possible that your listing has gone stale. Here are some ideas for reviving a stale property listing.   Give your home a lift   Chances are that when you first listed your property you kept everything spick...

23 June 2025

Important News About Energy Performance Certificates

New rules on preparing Energy Performance Certificates, or EPCs, have just come into operation. Here's what you need to know about EPCs going forward.   What is an EPC?   An EPC is an Energy Performance Certificate.   EPCs show you how energy efficient...

16 June 2025

Your Mortgage Interest Rate - How Is It Set?

The Bank of England will announce its latest decision on interest rates later this week. But have you ever wondered who decides what your mortgage interest rate will be? Here we'll explain how it all works.   The Bank Rate vs the mortgage rate   The first...

Get an instant online valuation

Find out how much your property is worth