7 Signs Your Rent To Rent Strategy Isn't Working
Is your Rent-to-Rent strategy working for you?
Discover seven key signs that your Rent-to-Rent strategy is not working and how you can overcome them to succeed in your property business...
In this week's episode, I will be looking at how to identify seven signs that your Rent-to-Rent strategy is not working for your property business. Through my mentorship programmes, I work with many people who have set up their Rent-to-Rent business but have hit a brick wall. For some reason, it's not clicking for them. I want to cover some of the most common issues people are experiencing and how to overcome them.
1. Underestimating the challenge
Most people I speak to underestimate how difficult Rent-to-Rent can be when first starting, it requires a lot of commitment. It's a funny game, Rent-to-Rent can be easy when you have established yourself and built your foundation, but it is hard until it gets easy. In the beginning, it was challenging for me, and I struggled for ten weeks before experiencing any success.
2. Lacking focus
My recommendation would be to focus initially on one strategy, focus on one course until successful. I speak to many people, and they are spreading their efforts over multiple strategies, rent-to-rent, commercial, deal packaging, lease options - if this is you, you will struggle.
3. Not prioritising value-adding tasks
It's essential to have a clear focus and the ability to prioritise tasks effectively. In my business, I apply the 80/20 rule, 80% of the money usually comes from 20% of the things you do. The number one thing you need to be concentrating on is getting in front of landlords, speaking with agents, networking, viewing properties and putting in offers.
Listen to this weeks episode to discover four further signs and how to overcome them.
In this episode, you will discover
Seven signs your Rent-to-Rent strategy is not working
Why you should not underestimate the challenge
The importance of the correct education
Why you need an effective elevator pitch
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Podcast Transcript↓
[00:00:56] What's going on Simon here. Welcome to another episode of the podcast. And on today's episode, we're going to be looking at the seven signs, your rent to rent strategy. Isn't working. It's just not happening. You're trying, but something is just not clicking. And I've put these seven things together through feedback from the market.
[00:01:21] These are all real life things. I see every single day, a lot of people I speak to that want to join my mentorship. These are the most frequent problems I see. So if you're brand new to rent, to rent, you're trying to get involved. Or maybe, you know, you've been in it a little while, but you've hit a brick wall.
[00:01:43] You're stressed Glen, this episode's for you. We're going to talk about the seven signs you need to look out for. And of course, how to overcome them. Before we get into this as usual. If you're brand new to the show, please hit the subscribe button. We released new material every single Monday. And if you like content like this, Follow me over on Instagram, @simonsmithonline
[00:02:09] I have been doing videos and extra tips and extra content on there. So if you're not already following me on there, it's also a great way to reach out. If you've got any questions or any topics you want me to cover, hit me up, drop me a DM, and I'd love to help and get back to you straight away. So straight into it, seven signs.
[00:02:29] You need to look out for number one, you're underestimate in it. You know, may be, you've done a bit of research. You've read a couple books, maybe you've done a course and you're kind of fudging things together, but you're underestimating what it actually takes to be successful in rent to rent. Now it's a funny, old game.
[00:02:54] It's like, it's quite easy when you know how you know, it's hard until it's easy. But it is quite hard at the beginning. It was really, really hard for me at the start I was struggling. It took me 10 weeks of slave in a way get in nos. Um, I never ever forget actually, a landlord that I met. It was in the first few weeks he liked the concept.
[00:03:23] He wanted to work with me. We sat down, we planned, we agreed on a figure. And he couldn't wait to see the back of this property. In fact, he threw the keys to me before we'd even signed the paperwork. And I remember taking Lucy there. I even took big pole up there and to have a little look at what works, where required.
[00:03:44] And it wasn't until right at the last minute, two weeks later, I think it was when I'd started planning and everything that the landlord's wife. Decided that they just wanted to rent it to a family. So I lost the deal. So you want to make sure you don't underestimate it. Another key thing here is I see people losing a lot of money too, in this.
[00:04:12] That's why I'm always very, very, very picky about who I, particularly who I decide to work with because. I don't want to work with people that I don't think actually can do this and you will lose money if you don't get this right. So you need to make sure that you know your stuff and you're giving it the level of attention necessary.
[00:04:33] Number two, lack of focus on one single strategy. So it's the whole saying focus on one course until successful. That means you need to focus on one strategy. So if you like rent to rent, and if you think rent to rents for you and it works for your situation, just focus on it. Cause I speak to so many people and it's like, well, I like the burst strategy.
[00:05:01] I like commercial conversion of light rent to rent, but then I like lease options. And then I might just try deal packaging, if that's you. That is a key sign that. You're gonna struggle. You're time-wasting you procrastinate. You need to focus on one. If that's rent to rent, great. Double down. If it's not, that's also great double down on the alternative, but don't be trying to do everything.
[00:05:27] Number three is a lack of time spent on value, adding tasks. Okay. A lack of focus and a lack of direction in terms of how you're prioritizing tasks. And this is the 80 20 rule. 80% of the benefit, 80% of the money made 80% of the enjoyment you have in life usually comes from 20% of the things you do. And in business terms, businesses always say 80% of their profits of their sales comes from 20% of their marketing or sales activities.
[00:06:06] And therefore it's rarely important to double down on those 20%, the 20% things, which in rent to rent is going to be get an in front of landlords face time. It's going to be speaking with agents, networking, viewing properties, put in offers in. So if you're spending too much time thinking about whether you're going to call your name Smith.
[00:06:30] Properties limited or Smith property limited see this all the time, or if you're spending loads of time, you know, deciding which level of the PRS membership you're going to go for, or wherever the website should be this colour or that colour, none of these things are going to make a huge difference. So you just want to decide and move forward.
[00:06:54] Really, really key number four, not enough education where it counts. And it's a funny thing, because I see people go to university and rack up tens of thousands of pounds worth of debt, but they won't spend three grand on a course or five grand on a mentorship. Don't make sense. You know, if he was going to try and learn how to fly a plane, you won't just read a book and give it a go, would you.
[00:07:25] So it's really important to just get educated. And in terms of education, you need to make sure that you choose somebody that you trust somebody that you're confident in. Somebody that you think will get the best out of you, somebody that you believe in, but you also need to make sure that they've got your best interests at heart.
[00:07:50] And I hate these educational systems where they don't find out your full picture. They don't find out how much money you've got to then work out if you can afford the course. So then some people spend 10 grand on courses. They've got no money left to invest. That's really annoying. It really frustrates me.
[00:08:08] So mined out for that, but please, whichever way you're going to go get educated, make sure. Number five. And I see this all the time. It's the blah, blah, blah sales, the blah, blah, blah sales. So you go, you finally get into the agency or the landlord and you just go, blah, blah, blah, blah, blah, blah, blah. Don't listen, don't pause.
[00:08:32] Don't take a breath. And you just tell them everything that you think they need to know about your service. Less is more 90%. Is listening, listen to the client, listen and find out what their problem is. And only then do you pitch your solution because if you just ramble on and blah, blah, blah, and tell them everything, they might only need to know about one thing.
[00:08:58] Some people actually talk themselves out of the sale. So if you finding yourself just talking a lot. Then chances are, you're going to be failing in rent to rent. Uh, you need to make sure that you're getting educated so that you know, the scripts and you know what to say, number six, no money. If you've got no money, I'm afraid you're not going to be able to do property right now.
[00:09:29] There are a couple of strategies, you know, like, um, deal trading. That evolve no money, but generally speaking, if you're going to be investing in these properties, there's going to be some level of investment. If you've got no money, you need to find a way to raise money and you need to find a way to use the free education.
[00:09:51] Now, caveat, I did start with three K. Okay. I did start with three Ks. I'm not saying you need loads of money, but you do need some money. You definitely need something. You've only got a grand, don't spend a grand on a course because you're not going to have to do anything. You're not going to be able to exercise what you've learned.
[00:10:11] Number seven, lack of focus on an investment area. I see this a lot. So people will be like, well, I quite like this area, but then I'm thinking that area. But then this area is really good for that. And it's a scatter gun approach. One time. I actually spoke to an investor based in London that was on, about doing rent to rent in Liverpool.
[00:10:34] And I just was like, hell no, your area should be 20 to 30 minutes away from your house. Ideally closer. Why? Because you've got the local knowledge because you know, what's what, because you can easily transport there because you can do the necessary viewings. Once you get the properties, they're going to be easier to manage.
[00:10:56] Now, if you don't live in an area where it's possible, you know, then you may have to commute or just move houses. But if you do live in a town or an area where there's some sort of demand, try and stay as close to home as possible, even if it's saturated, you can learn your trade. If first deal, most areas can take one more property.
[00:11:22] You know, so has housing shortages, coupled with rise in population equals higher property demand, and we're in a renter's economy. Now, specially post COVID people are going to be struggling to buy houses. They're going to want to rent people's situations are changing. They're going to need to rent. So yeah, that’s.
[00:11:47] It seven signs, your rent to rent strategy, isn't working and a few tips on what to do. So just to summarise, number one, don't underestimate rent to rent. You will lose money. You'll waste time. You will come and done. And it's very dangerous. Number two, lack of focus, pick one strategy and stick to it. My granddad, um, you know, I remember as a kid, I used to be on the TV and like constantly changing channels and he used to say, Pick one and stick to it.
[00:12:18] So make sure you pick one strategy that works for you and stick to it. Number three, lack of time spent on value, adding tasks, ask yourself what are the key things you need to do to get results and focus on them. Number four, not enough education where it counts. There's some things you can definitely wing.
[00:12:39] But then when the letting agent sends you their agreement and you have to scrutinize it, go over it, add clauses, remove clauses. You can't guess that stuff you'll get into trouble. So please, please get educated. Number five, the blah, blah, blah sales in Jane. When you don't know something or when you're lying, you have a tendency just to rent, uh, just a ramble on.
[00:13:06] So, what you want to do is learn what you're saying, learn your elevator pitch, and then just keep it simple. Don't talk yourself out of the deal. Number six, no money. Look, if you really want to do property and you've got no money, just focus on the free information. Don't get yourself in debt over this stuff.
[00:13:28] Yeah. Focus on the free information. Absorb it all. Save some money. You know, save some money, find a way to raise a bit of money so that you can do this, right? I'm not talking about loads, just talking about, you know, five, 10, three, 15, K, whatever it is you can afford, but don't try and do five. And Japan's a number seven, lack of focus on investment area.
[00:13:52] So that means focus on an area. As soon as you've selected your niche area, you can very rarely double down on it. And that's when you're, you've got nothing else to get in your way. You know, you're doing rent to rent, you know, the area you you've got educated, so you know your stuff. And then all you've got to do is increase your output and make sure that you're focusing more on the 20% to get the 80% output.
[00:14:19] So that's it from me. If you've not already, please do subscribe to the podcast, spread the word. Uh, the response has been amazing. I can see the numbers are growing every single week and a thank you for that. Literally. Um, I could never have imagined it going like this, and I'm just grateful. Very, very grateful.
[00:14:39] Don't wait 25 years. Get Creative. Thanks for listening. For more information, check out Simon Smith, online.com. See you next time.