10 Rent to rent Pitfalls | Rent2Rent | Rent-to-rent Uk property investment pitfalls

Don't get started in property with the rent to rent strategy until you have watched this video explaining 10 rent-to-rent pitfalls you will rarely hear mentioned on rent2rent training courses and seminars.
Rent-to-rent for the unwary can be a disaster. Take note of these 10 rent2rent pitfalls before embarking on this strategy.
Keep watching till the end of the video and I will share how some of my students are implementing rent to rent successfully.
Tell me what you think in the comments below.
Come and join us at the UK's number one property investors networking meeting in Central London. visit www.succeedinproperty.com/bakerstreet

[@ranjanbhattacharya-succeed7617]

For details of Ranjan's Commercial Property weekend workshop visit: bakerstreetworkshop.com To attend this months Baker Street Property Meet visit: bakerstreetpropertymeet.com

[@ranjanbhattacharya-succeed7617]

@Wild Eye don't normally rise to trolls, but am intrigued. I unclear whether you are criticising me or my company or whether you are wrongfully associating me with others as a collective 'industry'? If your criticism is against me or my company then please be specific? If its against an 'industry' you feel I am part of, please specify what industry it is?

[@RobertGillontheinterweb]

Samuel Leeds should watch this video

[@davidskeeterskeeter1835]

Just a small time seminar salesman,! 🐖💨

[@Spenny]

this guy talks waffle idc how many millions hes got. rent to rent can obvs make you capital with majority of roi's being 100% plus if done correctly, jk man

[@bigbawsdogg]

I agree with Ranjan. However, whoever has been told to approach this as anything else than a business has been misled. It is a property management business. Nothing more nothing less. Like all businesses you can pay someone to manage things. Naturally, you have to pay out of your profit but it does give you the time back to expand. I've only taken on perfect condition properties and systemised management using software and VAs. I spend 10 hours a week on my R2R portfolio mainly for visits. My next step is to go into acquiring HMOs and putting the same systems in place.

[@innov8properties913]

Awesome, I hope things are still going well for you. Where did you find the best place to learn this?

[@vincecourts8740]

Liked before watching and didnt regret it, love this brother!

[@oliverraman]

Thanks Ranjan! Great content and very relevant to Australia too.

[@rajmalhotra420]

Hi Ranjan, As Always "Wise Words of Wisdom!" Caveat Emptor on Rent 2 Rent!!

[@emanal5069]

really important video. Thank you.

[@jimm8061]

Ranjans video is an eye opener. I was sold lock stock and barrel to the rent to rent strategy, but listening to him I think he makes sense. Am particularly concerned about the upfront conversion expenses which runs into tens of thousands. And you are spending it on somebody else’s property. That same money you could probably use as a deposit to a property. Then there is the issue of landlord defaulting on his mortgage, leaving you exposed to possible loss. Those are the main cons I see. But the pros I see is that not everyone can get a mortgage so they may want to swim from the shallow end and face the rent to rent challenges.

[@ZenfulLifeTV]

This is gold!

[@tomatobrush3283]

That is why rent to SA works best on A1 flats where there is a maintenance fee that covers large issues.

[@uiqbal10]

What a great video!

[@pilkers745]

Ranjan, great video! How about commercial property r2r? I remember you had a deal where you found a vacant shop, pre-let to greggs, then acquired the property thus uplifting its value. I wonder if you could use rent to rent instead if you didn't have the money to get the property? Say you rented the previously vacant shop for 40k/yr and then sublet to greggs for 60k/yr.? Giving you a profit of 20k/yr

[@innov8properties913]

What about rent to rent strategies where it gives you the option to buy the property at the end? I appreciate your video but I still see more pros than cons about rent to rent, especially as not everyone has the capital or even credit rating to own properties. I think methods like this should remain here long term as it enables the 'smaller man' if you will, the chance to get into property rather than just focusing on those who have money.

[@karimbelhadj3871]

Exactly what the SA gurus won’t tell you in their videos . All you hear is the sky is blue. At least Ranjan gives you both sides & an alternative . I didn’t know about Commercial Rent to rent & will investigate further 👍

[@JAMAL12382]

Hello love the video what are your thoughts on rent to Service accommodation in areas of significant demand such as zone one London?

[@anthonydear4708]

Really enjoy watching your videos. The rent 2 rent model even though it’s all the rave, for some reason didn’t fit comfortably with me. I thought I was missing out on this ‘gold rush’. Thanks for bringing it back down to Earth.

[@alisonnorcross951]

I thought I was missing out on the gold rush too.

[@chrissmith4493]

He's just showing the pitfalls of it. It doesn't mean it can't be profitable

[@jacquelinejohnson138]

I really appreciate this video, I did not consider a few of these points. I am starting a rent to rent business as I have no experience in property & very little money. Eventually I plan on investing in buy to let’s.

[@davidskeeterskeeter1835]

Jacqueline Johnson save time and money and get a job,,you you are bound to fail,,this is an extremely unsound business model,,,PS 148 freehold houses 25% ltv,,and I’m getting OUT,! It’s over, it’s gone,,we’ve had the good times,,time to get out guys,,section 24,,,is the beginning of the end,☠️🇬🇧

[@adamwong4056]

Thanks for the info =)

[@zamzma]

very wise

[@dannymurphy1779]

I think rent to rent could be interesting if you have property maintanence experience and would like to bolt it on to an existing business say. It is not passive as you say but if you have skills you can bring to it on the maintanence and letting side then I can see it could be a win - win thing. What I see on these courses is the people on them don't have any practical skills, as you have skilfully highlighted there are many pitfalls both contractually and with the practical building operation. I also think you would have to know the owner pretty well to go into one of these for all the legal reasons you outlined.

[@alisonnorcross951]

I think it could be okay if you have the energy to deal with stuff and enjoy. It would not be for me.

[@tomatobrush3283]

Why do i get the feeling you could have kept going and not stopped at 10?

[@jamesmulvany1751]

I think if they're tired they're doing something wrong. The whole point in scaling any business is that you take on staff to do the work that you don't want to do. Otherwise any business can get too much very quickly. Surely, it's not really scalable as a business if you can't afford to take on staff to do the leg work.

[@spencercooper-thorn2624]

Great video and to be honest was thinking almost all of these outcomes. I would like to attend one of your Baker Street seminars and was wondering if they are specific in different strategies of attack . If so could you please indicate how I find out which courses will Be covering which areas I would greatly appreciate it . Thank you

[@ranjanbhattacharya-succeed7617]

Hi Spencer. We are moving from one phase in the property market cycle to the next. The last time this happened was 2009 which created tremendous opportunity which lasted till about 2014..... and we are seeing it again in 2019. Many of my videos will be on why previously popular investment strategies will be less effective in this next phase of the cycle and which strategies will be super effective and why. For the next few years, I see commercial property investment and development providing the best opportunity. (A video explaining why, will be available in the next couple of weeks

[@alisonnorcross951]

Thank you for this great video. I was wondering about R2R and I did think the investers would be benefitting not the person doing all the work. I heard cash flow is king but I don't think this is a good avenue to go down after you have clarified this nicely and easily and clearly and simply.

[@shardanorman]

I would like to learn about commercial property investment please

[@Badman-jl4zg]

Can I legally buy a hmo deal by someone who is running the hmo (sub letter) deal now in a article 4 area avoiding planning permission? If so how much would someone (sub letter) sell the hmo over to me?

[@linglee5759]

Is wonderful for the landlord - guarantee rent and in 10 years, his asset will likely have doubled for doing nothing. Capital growth is real growth in his wealth. While the rent-rent guy has burned his time trying to make a little income. Owning is the way.

[@gordonrussell8161]

" Thanks for the straight talking "...I have alway's been wary of ..."Coarse sellers & their hyper positive spin".

[@ranjanbhattacharya-succeed7617]

thanks for your feedback. This video was recorded before covid. During covid, rent-to-rent has got a whole lot harder in terms of maintaining full occupancy (particularly in cities and large towns)

[@lhefe85]

Hey Ranjan, your first point regarding the headache of managing the property is true but most these seminars reccomend you find a good management company to do this for you, not do it yourself, this will reduce your margin but allows you to do multiple rent2rent deals without spending anytime managing, does not eradicate this problem?

[@ranjanbhattacharya-succeed7617]

That is true, but there lies the problem. ...and that is finding a good management company. What kills your rent2rent profit is voids, and its extremely difficulty to find a management company to do this with minimum voids. The people who succeed, end up setting up their own property management business. All I am suggesting is, that you will be a lot better off putting all that effort into asset acquiring strategies rather than asset managing strategies. If you come to Baker Street Property Meet, I will introduce you to many who have handed back R2R properties for this reason

[@lhefe85]

I see what you mean. Yes I will attend your Baker street meet. I have a few btl property's but I would like to pick your brain about taking this to the next level and making property my full time and escaping the rat race.

[@planetblix]

Hi Ranjan, can you expand on ‘acquire the asset’ in a future video. Thanks.

[@ranjanbhattacharya-succeed7617]

Yes. Coming soon are some videos on why asset acquiring strategies are right for 2020 and how to get started. (Make sure you subscribe and smash the bell icon to get notified when we upload.)

[@planetblix]

Ranjan Bhattacharya - Baker Street Property Meet Thanks Ranjan. Subscribed! 👍

[@mariescott637]

Hi Ranjan! I find your videos so matter of fact and are therefore are a major asset to the professional property investors community. 😊

[@ranjanbhattacharya-succeed7617]

@@mariescott637 Thank you. I just trying to tell it as I see it.

[@AlbionFinancialAdvice]

Most lenders won’t allow it so only really possible with unencumbered properties.

[@britsfirstfitness5026]

You don't have to be tired hand it over to a holiday agency like sykes Airbnb

[@dannymurphy1779]

Perhaps No 11 should also be the cost of the utilities and Council Tax when you rent 'all inclusive'. Most of these courses talk a lot about getting £350 upwards a room but they never mention the utility bills are about £350 a month too! Plus as you said you have got to budget for maintanence and also wear and tear depreciation. Then there is the tiny box room that will never rent at full whack, more like £200 I should think.

[@ranjanbhattacharya-succeed7617]

absolutely spot on Danny. Also, pitfall 12, if 1 or 2 rooms are empty, that is pretty much your rent-to-rent profit wiped out!

[@dannymurphy1779]

Avoid the voids! Saw a guy do some in Blackpool - call me mystic meg but I doubt there is too much demand in November - March there :).

[@johnporcella2375]

Not all rent to rents are for multiple occupancy, surely. Some are rent to SA.

[@davidskeeterskeeter1835]

Rent-to rent,! 😂😂😂😂🤣. They are just skint “and without credibility” wannabe landlords🎩 or they would be able to fund their own properties 😂😂

[@CodeCommand]

everyone starts somewhere

[@willrobertson9549]

Small brain

[@innov8properties913]

Great to see your the type who wants to laugh at people when their down or someone who thinks their above folk. I hope you're never in a position where you are "skint".

[@lemonmaze2700]

So what, how am I supposed to just buy my own house?