Why Rent To Rent and R2SA Are Ticking Time Bombs - with Chris Grant

The Property Nomads Podcast

Rob is joined by Chris Grant, an experienced property investor with a portfolio worth over £10 million. Chris shares his journey in the property industry, from starting as an estate agent to building his own portfolio through flips and investments. The focus of the episode is on the topic of rent-to-rent and rent-to-rent service accommodation, which Chris refers to as a ticking time bomb. He highlights the potential risks and liabilities that landlords may face when entering into rent-to-rent agreements, including compliance issues and the lack of regulation in the market.

KEY TAKEAWAYS

• Rent-to-rent is an arrangement where a property owner allows a third party to rent out their property and profit from it.
• Rent-to-rent operators may take on full responsibility for renting the property, but the ultimate liability still falls on the property owner.
• The rent-to-rent market is largely unregulated, with operators often lacking experience and proper compliance measures.
• Landlords should exercise caution when entering into rent-to-rent agreements and conduct thorough due diligence on operators.
• Mortgage companies may not have specific provisions for rent-to-rent agreements, potentially creating issues for landlords in the future.

BEST MOMENTS

"I think where the issue lies with me is in handing over your property for somebody else to have almost complete control of in times where we've got very and increasingly strict licensing regulations."

"I think lenders probably really need a wake-up call to the extent of rent-to-rent that is out there at the moment."

"I think there's very much an easy money environment that's been created there. That's how people sort of see it."

"You're dealing with people's welfare, healthcare, and putting a roof over people's head and, you know, something like that you just can't leave."

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ABOUT THE HOST

Rob Smallbone is the author of the Amazon best-seller Buy-To-Let: How To Get Started as well as 101 Top Property Tips and Property FAQ’s.

BOOKS

Property FAQs = https://amzn.to/3MWfcL4

Buy To Let: How To Get Started = https://amzn.to/3genjle

101 Top Property Tips = https://amzn.to/2NxuAQL

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uk property, Investment, Property, Rent, Buy to let, Investing for beginners, Money, Tax, Renting, Landlords, strategies, invest, housing, properties, portfolio, estate agents, lettings, letting, business: https://patreon.com/tpnpodcast