Rent to Rent - safe of a landlord?

theartfullodger

Don't.  DON'T!  Very good guide about dangers on property tribes.

Oh, forgot, don't!

propertyrental

foxreymann said:

propertyrental said:

Insurance?

Consent from freeholder (if relevant)?

Consent from mortgage lender (if any)?

But even if the above issues are OK, I wouldn't touch this with a bargepole. In particular, if you're going to grant a commercial tenancy to (Ltd Co), then they should be responsible for ALL repairs, maintenance etc and return the property in condition they found it.

Irrespective of whether within, at end of, or after the fixed term, you can't evite the occupant (who has an AST of which you are not the landlord, making you powerless.)

Great points, you really know what you're talking about

Insurance - I've one but I've asked to remove it from the agreement
Freeholder - I'm the freeholder
Mortgage - No mortgage

The deal is that agent is doing only short term lets in the house, but you're right, the agreement doesn't say so. Should I like ask to add that only rental up to 30 days are allowed?

Re insurance - does your policy permit commercial lettings? Some do, many don't. You may find it's invalid so check.

You can ask and they may insert a clause, but what will you do if a) the agent grants a longer tenancy or b) the tenant fails to leave after 30 days.

As has been pointed out, you are pretty powerless in the face of a valid AST of which you are not the landlord.

foxreymann

propertyrental said:

As has been pointed out, you are pretty powerless in the face of a valid AST of which you are not the landlord.

Ok, so the black scenario you see is:
- The Company is going to let on AST
- Tenant doesn't pay
- The Company goes bankrupt / missing.
- I can't kick the tenant out as the AST is with The Company

Correct?

foxreymann

Stubod said:

..nah...just sell it if you are too busy....

I'm not going to sell. I have 2 houses in Bermondsey. This is a huge achievement for me. I'm not going to buy any more properties as I realise I don't have time to manage it but I ain't selling.

foxreymann

My final decision is to ask the agent to change to agreement to allow any short term airbnb/booking.com type rentals. I don't see an issue with these.

Hoenir

foxreymann said:

My final decision is to ask the agent to change to agreement to allow any short term airbnb/booking.com type rentals. 

What's the financial cost of doing so as this is more or less your existing model?  Neither are you absolving yourself of all your existing workload reading the contract.  Seems an arrangement weighted in favour of the letting agent. 

alanyau88

What stops the agent in carving up the house into 5 rooms and subletting them out?  As long as he makes enough to cover your rental agreement with him, then anything over is his to keep.  Your house will be worst than a HMO that's not regulated properly and if anything risky happens, you are the owner and ultimately landlord left with the bill.

theartfullodger

https://www.propertytribes.com/pay-25k-upfront-for-rent-to-rent-scheme-t-127660786.html

In particular the video on being scammed.

Don't!!

propertyrental

Mad!.......

Emmia

The OP will undoubtedly be back to ask how they can dig themselves out of the pickle they're about to get into...