How To Get More Rent-to-Rent Deals Through Letting Agents

Want to know how to get Rent-to-Rent deals through letting agents?

Learn step by step how to source deals through letting agents, how to identify properties, how to build rapport and the next steps you will have to take after securing the deal…

This episode is dedicated to guiding you through step-by-step exactly what you need to do to secure Rent-to-Rent deals through letting agents.

First, let's define the two main ways you can secure Rent-to-Rent deals. The first way is direct to the vendor, speaking and negotiating directly with the homeowner. The second way is through letting agents, who have a massive stock of deals, ready to go.

Generally speaking - it's harder for people to find deals through agents, but I love working with agents. If you manage to build a relationship with agents, they have access to the whole market and an existing database of people that you can tap into.

As an example - one of the biggest agents in my area manages over 3,000 properties. What percentage of those properties would you need to secure to make your business?

So let's get started.

First things first, you need to get set up correctly. If you are going to be successful approaching agents, you need to have a professional image. For example, forget about it if you do not have a website, do not have a professional image, or are still using a Hotmail email. That's not going to cut it with agents.

You need to be set up right from day one. You can find my free 12 step guide on how to set up your Rent-to-Rent business here.

The next step once your set up is to find your first property - and a great place to start is Rightmove. First, look for the properties that are advertised to-let, then contact the agents to see if you can arrange a viewing. You are likely to get a lot of objections at this stage.

Listen to the podcast episode to discover how to handle common objections and the next steps you need to take to secure deals through letting agencies…

Podcast Transcript↓

[00:00:00] How to get all two odd deals through letting agents on this video, I'm going to walk you through step by step. Exactly what you need to do to get rent, to rent deals, letting agent or two odd deals. This is one of the holy grail. I know a lot of you rarely struggle with this, so I've decided to do a video.

[00:00:21] Dedicated to guiding you through. Step-by-step exactly what you need to do to get deals. If that sounds good, you know what to do? Hit the light button, hit the subscribe buttons. If you get notifications every single time I released material. Okay. There's two main ways to get rent to rent deals. The first way is direct to vendor.

[00:00:46] I E direct with the home owner. The second way is through letting agents that have a massive stock of deals, ready to go. Naturally, it can be harder, or people tend to find it harder to get the deals through the agents. But I love agency deals because if you can. Them onside. They've got a whole market, they've got a whole client base of people you can tap into to give you an example.

[00:01:17] The biggest agent in my area, managers, over 3000 properties. So how many percent of those do you need to make your business? So let's get into. First things first, you've got to get set up correctly. You've got to have the right professional image for these agencies to take you seriously and let you get on board.

[00:01:39] So if you've not got a website, if you've not got a professional image, if you're still using Simon 5, 4 7 4 6, 19 ninety5@hotmail.com. Forget about it. That's not going to cut it with these agents. So the first thing you've got to do is get set up right from day one. And I've actually got a video guiding you through that process as well.

[00:02:03] I will. In the description below, go check that video out. And I also give out a free 12 steps checklist to get in set up correctly. If you're finding this of value, all I ask is that you hit the subscribe button right now. Comment below with any questions you've got. So step number two is your setup.

[00:02:23] You're an official rent to rent. You've got your company is looking good. It's feeling good. Next thing. A great place to start is on right move. And what you want to do is you want to have a look at the properties that are being marketed to see which landlords are advertising their properties to let, then what you'll need to do is pick up the phone and call these agencies to see if you can arrange.

[00:02:51] Now you're going to get tons of objections here. We don't do company. Let's, you're a new business. The landlord wants a family. What you're going to need to do is navigate your way through those, to the viewing. The only objective of this call is to get the viewing don't overshare. Don't oversell. Don't talk yourself out of it.

[00:03:13] Get around the property. And then when you're face to face with the agent, you're going to be far better positioned to build rapport and build momentum with that agent. Now I know what some of you were going to say. Yeah. But Simon on Todd waste of my time, I don't want to mess people about, yeah, that's fine.

[00:03:32] And I get that, but trust me, right? Trust me, people don't know what they're doing. Once you round the property and you can build rapport. You're much more likely to get the agent on board, but Hey, what's the worst that could happen. You're building your connections, you're building your experiences and you're finding out who's open to it.

[00:03:50] And who's not number three, you've got the viewing. How do you approach it? Well, look personally on viewings, especially with agents. My main primary primary goal is just to build. And the main reason for that is, as I've said, they've got a massive stock of properties. So if this one doesn't work, maybe another one will people do business with who they like.

[00:04:16] So I want to build rapport, find out how long they've been doing it. If they enjoy it, what they think to the market, you know, maybe which areas they recommend and build a little bit of a relationship with the. You want to look at the property, see the condition of it and find out the landlord situation to see if they would be open to a long-term let, assuming the are and that the property sooner.

[00:04:42] Don't wait, make an offer step for so many people, dwindle daily and daily way around trying to really complicated offers of what works need doing. And this can be one of the most frequent ways of losing agents. So what you want to do is if you decide this property works for you, you want to make an offer, which simply comprises of the rent and the term.

[00:05:11] Once you've confirmed that you can move on to the other bits. Step five. The first thing the agency's going to do once your offer is accepted is asking you to pay a holding rent, pay it don't delay because as soon as you've paid that they'll take the property off the market. And they're going to take you much, much more seriously, a little extra tip here.

[00:05:33] Is that recently or not so long ago? Should I say there's a tenant? Ban. This means that letting agents can no longer charge sort of single laptop or, um, personal people, renting properties, any fees, they can however, charge companies, but they don't all know this. So if the agency wants to charge a company, let fee four, five Japan.

[00:05:59] If they're charging you holding rent. So, um, you know, a contribution to the first month rent, just pay it as soon as you paid it, the property is yours and they're invested in making this. Step six, your offer has been accepted. You've paid the fee. Now it's time for the application process and I'm not going to lie.

[00:06:19] This is a lot more complicated with agencies compared to your landlords. So one of the biggest things you're going to have to overcome is your affordability. And typically agencies require tenants that source in this case to earn 36 times the monthly rent. So if the monthly rent is a thousand pounds, they're going to want to see that you are earning 36 X 36 grand.

[00:06:48] Now I do have to say, if you can't show them, Um, you will need to provide a guarantor. If you can't provide a guarantor, you're going to be much better off going direct to vendor and below. I'm going to post a video where I guide you through how to get rent to rent deals through direct to vendor. If you can't show 36 X, your average rent, if you can't provide a guarantor, you pretty much might as well.

[00:07:14] Focus on director. The only exception to this is if you can find an agent that really connects and likes you, I've actually had a situation in my business where the agent didn't do any checks on me because they liked me. They trusted me. They'd seen all the things I was up to, and that was that, but that is rare.

[00:07:33] Another objection you're likely to encounter at this point is that you are a new company. If you are, don't try and lie or whatever you're doing. It's right there, black and white on the company's. All you're going to have to be able to say is, look, we're a new company. We won't pass the checks, but I'm able to offer a personal guarantee.

[00:07:54] Number seven is going to come down to the final negotiate and the clauses of the agreement. So look, you've found a property. You've had your offer accepted. You've paid the holding rent. You've now passed the application. Now is the time in my experience where you then want to go through the finer details in terms of.

[00:08:14] The terms, if you do this too soon, you will get pushed out the door. If you do it too late, you will come across. Like you're changing the goalposts. So there is an art to this, but now's the time when you want to talk about rent-free periods, who's doing, what if there's any works that need doing and making sure that you fine tune those?

[00:08:35] So, what I typically would do is at the time of the viewing, if there's anything that screams out like a big stain on a carpet, I would ask the agent what you think can with that, so that they're aware of it. And then I wouldn't really bring it up till this point where I would say, oh yeah, by the way, what are we doing with the carpets?

[00:08:55] Oh yeah, by the way, you know, it's going to take me a couple of weeks to do XX. Can we work that into the agreement. Number eight is contract time. So this is when they're going to send you the agreement. Now, typically they're going to send you a company, let agreement. And the thing with this agreement is it assumes you are a company letting the property on behalf of your employees.

[00:09:22] And we know that is not the case. We need to make this clear. Well, I typically do is as soon as I see the agreement, I say, yeah, it looks great. We normally have to make a few amendments. I'll get back to you shortly. Dan, you're going to need to go through this agreement carefully and make any changes or additions.

[00:09:43] And I'll give you one example of a change. It's not legal advice, but just from my experience company, lets we'll often have a sublet clause in there which say you are not allowed to sublet the property. And of course that's exactly. You're going to be doing so make sure you get that removed and make sure you've got the correct termination clauses in once again, I can't give legal advice.

[00:10:06] Um, but if you want to reach our, um, Instagram at Simon's before line, I can point you in the right direction. Last, but not least step number nine is keys day. And until you sign on that dotted line and get the keys, please, whatever you do, do not take anything for granted. When you get the keys, please make sure that you do.

[00:10:29] A recent Gus search. You do get an E I C R you do see the EPC because these are documents that you were going to need. If it's an HMO, make sure you see the license. The amount of times I've spoken to people. And they've said, yeah, it's an HMO, but there's no license. Or the license is only for five rooms when really they've been sold it as a seven bed property.

[00:10:53] It's insane. So make sure you get the documentation, get the keys. And now. The real work starts. So that's it from me. I hope you've found this useful. If you have, please do subscribe to the channel comment below with any questions you've got and I will see you in the next video.

[00:11:23] Thanks for listening. For more information, check out Simon Smith, online.com.