There is clearly something very wrong with the current housing system if individuals can earn sufficient income from properties that they don’t even own that they can give up paid employment. Rent-to-rent is now a thing.
That is the case for a couple in Coventry, who claim to be earning £4,500 each month renting out houses to third parties. Their ambitions lie far beyond the five properties they currently ‘rent-to-rent’ (sub-let) to tenants. By the end of 2019, they hope to make arrangements on a further 48 properties, which would provide a turnover of over £1 million.
Jordan Boparan and Jessica-Marie Bradshaw pay landlords a guaranteed monthly rent, then let out the properties at a higher price; the difference is their profit. Each rent-to-rent agreement has a break clause that enables either party to withdraw from the arrangement after a year.
With no money to start their rent-to-rent business, the couple borrowed money on their credit cards to make improvements to the first properties they have taken on. Improving the properties has enabled them to find tenants quickly, and the approach has also proved beneficial in establishing relationships with property owners, for whom guaranteed rent plus an improved property equals happy landlords.
What is astounding is, not just that tenants are prepared to pay an increased rent simply for the privilege of a lick of paint and updated furnishings, but that landlords are unwilling to carry out these simple improvements themselves and cut out these middle men!
If you’re buying property to live in or let out, in Coventry or elsewhere in England or Wales, ask a Chartered Surveyor for a building survey to make sure you don’t take on expensive hidden problems.