offers from aspiring landlords

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    offers from aspiring landlords

    Hello,

    Presumably other people get these, and it isn't just us.....

    With almost weekly regularity, we receive a written letter from a budding landlord, asking if we will do some kind of deal with them over one of our HMOs (they presumably got our details from the council's register).

    We aren't actively looking to sell anything at this time.

    I received a letter just before christmas and for some reason I mellowed, and called the number. A very nice lady told me confidently that she would be interested in renting the property from me as a whole. I then said that that kind of arrangement wasn't of interest to me and would she like to make me an offer to buy, and she said she would have to speak to 'her investors'.

    I enquired further and apparently she was on a property training course, where people who can't afford their own deposit etc are taught a 'strategy' whereby they try to rent a whole HMO from a landlord (and in doing so, save that landlord time and hassle) and then try to make margin by renting the rooms at a premium. It is called "rent to rent" or R2R.

    Has anyone ever come across a situation like this?

    Are there any landlords who would be attracted to an arrangement like this? Are there any actual benefits to landlords - I'm not sure there are.

    Do people really sell training courses with this sort of stuff in them?

    #2
    Originally posted by wfd_property View Post
    Has anyone ever come across a situation like this?
    Yes, it's quite common and becoming more so.

    Are there any landlords who would be attracted to an arrangement like this? Are there any actual benefits to landlords - I'm not sure there are.
    Yes and No.

    Do people really sell training courses with this sort of stuff in them?
    Yes.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      There are endless posts on here and elsewhere about rent to rent problems. I would run a mile from all these offers and if you dont want to operate an HMO any more, sell it.

      Comment


        #4
        The property "Gurus" charge thousands of pounds for this "advice" leaving prospective investors with a head full of ideas and an empty wallet.

        I would steer well clear.

        Comment


          #5
          When people are selling courses that train people to operate in a field that they claim to be expert in and very profitable, you have to ask one question, "why are they encouraging competitors?".
          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

          Comment


            #6
            Originally posted by jpkeates View Post
            When people are selling courses that train people to operate in a field that they claim to be expert in and very profitable, you have to ask one question, "why are they encouraging competitors?".
            Love it. You are so right (as you invariably are).

            Any more thoughts around this issue.

            Comment


              #7
              There is one particular 'guru' that operates at one of the landlord exhibitions I attended. He had a provocative seminar title to hook people in, plenty of assistants running around and he paced the aisles with his head-set trying to create an aura of professionalism. He took 40 mintues to explain the most basic tax issue imaginable, that had already been covered to the same extent in about 2 mins in the plenary session. He presented it as some secret that he had uncovered that 'they don't want you to know' and to my amazement, a handful of people bought the book he was selling as a result. I don't know if anyone signed up to his training course. I complained to the organisers and they did promise to drop him from future events, but I noticed his name appeared on the seminar list for the next event.

              Comment


                #8
                Originally posted by jpkeates View Post
                When people are selling courses that train people to operate in a field that they claim to be expert in and very profitable, you have to ask one question, "why are they encouraging competitors?".
                Perhaps a more pertinent question with any 'Teach you how to make money' course is 'If it works so well then why are you selling courses about it instead of doing it yourself?'

                And the answer is that the only money to be made is in selling dodgy courses to gullible punters.

                (I have a good idea, oops it will never work, but it sounds good so I'll sell the idea itself to the gullible).

                Feel sorry for those falling for it, even if they are now annoying you.

                Comment


                  #9
                  If a LL does go ahead with this R2R and rents out a whole property to LL2 who sublets individual rooms as HMO, to what is the extent of responsibility of the first LL towards LL2's tenants? Say making the property HMO-compliant in the first case, evicting LL2 but the other tenants are left behind, etc. Although his tenant is LL2 on paper, the property is on his name.
                  Sounds like a recipe for disaster should an incident happen...

                  Comment


                    #10
                    Originally posted by wfd_property View Post
                    Are there any landlords who would be attracted to an arrangement like this?
                    None that are bright enough to read this forum.

                    Comment


                      #11
                      When I started out 20 years ago all the seminars were pushing the no money down rent back model where you buy someone's house for a discount and rent back to them, using the paper discount as your deposit. I still can't believe that so many people fall for these ridiculous seminars, surely 10 minutes searching the internet would tell you everything you need to know about these so called gurus. I honestly believe that certain people just want to hear what they want to hear.

                      Comment


                        #12
                        Originally posted by kelbol View Post
                        If a LL does go ahead with this R2R and rents out a whole property to LL2 who sublets individual rooms as HMO, to what is the extent of responsibility of the first LL towards LL2's tenants?
                        See here: https://www.anthonygold.co.uk/latest...-made-against/

                        And here: https://www.anthonygold.co.uk/latest...to-rent-scams/

                        Comment


                          #13
                          Isn't this R2R the same thing as the council renting your home to others? Except for the council they're going to say they're different, so different laws apply. In any case, I know to stay well away from any type of R2R.

                          Comment


                            #14
                            Yes it is...

                            Comment

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